Garden equipment maker Husqvarna on Thursday spied uncertainty ahead in key markets on both sides of the Atlantic as growth in the U.S. economy falters and Europe remains mired in its debt crisis.
Second-quarter profit for the world's biggest maker of chainsaws, trimmers, lawn mowers and garden tractors came in roughly in line with expectations as growth in the United States offset some of the slowdown in Europe.
But the company said demand for forestry and garden products in the United States dipped toward the end of the period, casting a shadow over future prospects.
"Looking ahead, the immediate market development in Europe as well as in North America is difficult to assess," Husqvarna Chief Executive Hans Linnarson said in a statement.
Operating profit was 1.1 billion Swedish crowns ($158.41 million) against a year-earlier 1.0 billion and an average forecast in a Reuters poll for 1.2 billion.
In North America, sales were up 23 percent on the year as the company put behind it the production problems at a new plant that sparked one of the company's two profit warnings in 2011.
In Europe, sales fell 7 percent.
"In the European markets, demand was hampered by unfavorable weather as well as weaker market conditions," Linnarson said.
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