Swedish outdoor appliances maker Husqvarna is maintaining its 2016 profitability goal, despite the anticipated impact from a stronger dollar, its top chief told Swedish business daily Dagens Industri.
Husqvarna, which competes with the likes of Stanley Black & Decker, Deere and Toro, has set a goal to improve its operating margin to 10% in 2016 from around 5% in 2013.
Chief Executive Kai Warn said it would be reasonable to target an operating margin of 5% in 2018 for the consumer brands division, which had a negative margin of 0.3% in the first quarter.
"I believe that a really well-run business could generate a close to 6-7% operating margin," he said, adding that the previous goal of a 5% margin in North America was not a primary goal anymore.
"But we can very well be transparent and say that there is nothing to indicate that we will not reach that in 2016. The goal is still reasonable," Warn said.
Husqvarna's North American business reported an operating margin of 2.5% last year, up from break-even in 2013.