Stockholm - Swedish group Husqvarna, a leading maker of chainsaws, lawnmowers and other garden equipment, issued a profit warning Tuesday and announced it would cut 850 jobs.

The move was due to a drop in demand in North America and Europe, the group said.

"The third quarter marks the end of the gardening season, and the effect of a weak season has a strong impact on this quarter," chief executive Bengt Andersson said in a statement.

Andersson added that "we have also noted greater caution on the part of our professional customers, especially in the construction industry."

The group said it expected third quarter operating income to be some 300 million kronor (44 million dollars) compared to 553 million kronor in the corresponding business period in 2007.

The group had some 16,000 employees worldwide at the end of 2007. (dpa)