BRIEF-Husqvarna drops sales target, focus on margin

STOCKHOLM Thu Feb 14, 2013 2:35am EST

STOCKHOLM Feb 14 (Reuters) - Husqvarna : * Says will no longer have a financial target for sales growth * Says medium term, initiatives to improve the group's operating margin will

have higher priority than growth * Says the operating margin will be supported by growth in selective areas * Says aims to strengthen the operating margin by a sustainable improvement of the gross margin, enabled by reduction of product cost and complexity, as well as lower cost to serve and sales channel and product mix improvement * Says other three financial targets remain; to achieve an operating margin of more than 10% over the course of a business cycle, a seasonally adjusted net debt in relation to EBITDA that should not exceed a multiple of 2.5 in the long term, and that the dividend shall normally exceed 40% of income for the year * Says the near term operating environment is expected to remain challenging,

especially in the European markets