(Updating with full report)
STOCKHOLM (Thomson Financial) - Stockholm shares closed sharply lower, close to session lows after early weakness on Wall Street led to a sell-off in late trade, with Husqvarna diving after reporting far worse than expected third-quarter results.
The OMX Stockholm index closed down 1.53 pct at 380.04, while the OMX Stockholm 30 closed 1.49 pct lower at 1,169.69. Turnover amounted to 23.234 bln skr.
Husqvarna B closed down 7.72 pct at 77.75 skr after the outdoor equipment supplier said its third quarter profit after financials fell 16 pct from a year earlier to 391 mln skr, versus market expectations of 431 mln skr.
The company said the result was hit by substantially lower profit at its consumer products division in North America, increased borrowing, lower rebates, and higher interest rates.
At the company's conference call CEO Bengt Andersson said he now expects the company's garden equipment operation, Gardena to incur a significantly bigger second half loss than the 100-150 mln skr previously forecast.
He said most of the loss will fall in the fourth quarter of the year.
Ericsson B closed down 1.05 pct at 18.86, off an earlier low of 18.60. Ericsson chairman Michael Treschow said he still has confidence in CEO Carl-Henric Svanberg, but that Svanberg 'must sort out' the company's current situation, which culminated in this week's shock profits warning, Dagens Industri reported.
Saab B closed down 2.85 pct at 153.50 after reporting a nine-month pretax profit of 1.269 bln skr versus market expectations of 1.307 bln skr, as recorded by SME Direkt.
'The report was quite weak. Operating costs were higher-than-expected, R&D admin, etc,' Mikael Laseen, an analyst at Kaupthing Bank said.
The rest of the market closed overwhelmingly sharply lower.
In the engineering sector, Sandvik closed down 2.97 pct at 130.75, SKF B down 2.65 pct at 128.75, and Atlas Copco A down 1.97 pct at 112.00.
Volvo B closed down 1.68 at 117.25 aftr disappointing results from US rival Catapillar.
Scania B closed down 1.14 pct at 173.50. Speculation that Volkswagen and Wallenberg family-controlled entities have agreed Scania will bid for MAN is being driven by market interests rather than hard facts, Sueddeutsche Zeitung reported citing sources familiar with the matter.
The sources said the story is rumour and only serves to drive the companies' share prices.
Elsewhere in the market, Skanska B closed down 1.89 pct at 129.50, Electrolux B down 3.13 pct at 139.50, Nordea down 0.46 pct at 107.80, Hennes & Mauritz B down 0.59 pct at 420.00, and TeliaSonera down 0.89 pct at 55.75.
Boliden however closed up 1.02 pct at 124.00.
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