Husqvarna Warns of 32 Million Dollar Cost Increase
CEO Glen Instone says rising freight and raw material costs may force price hikes. The company is monitoring logistics and oil prices amid regional instability.
The chief executive of Sweden garden equipment giant HUSQVARNA AB-A SHS warned on Thursday that escalating geopolitical tensions in the Middle East could significantly impact the company's financial performance. If the conflict between the United States and Iran persists throughout the year, the firm anticipates a cost increase of approximately 300 million Swedish crowns, equivalent to roughly $32 million based on current USD/SEK exchange rates.
CEO Glen Instone detailed the potential financial headwinds during an interview, noting that the impact would be split between logistics and supply chain inputs. Specifically, the company expects 100 million crowns in additional logistics costs and 200 million crowns stemming from more expensive raw materials.
