Volvo Group releases the third quarter report
The market development in the third quarter followed the overall
direction from the second quarter with good momentum in North America
and Japan and continued slow development in the emerging markets in
South America and Asia. The Volvo
Group increased its profitability compared to last year thanks to
improvement activities and that the Group has been able to partly
mitigate the negative factors affecting some markets.
• In the third quarter net sales amounted to SEK 67.2 billion (64.9).
Adjusted for currency movements and acquired and divested units sales
were on the same level as last year.
• Operating income was SEK 2,908 M (2,502) excluding restructuring
charges of SEK 659 M (104). Currency exchange rates had a positive
impact of SEK 485 M. The third quarter was negatively impacted by a
provision of SEK 422 M from a litigation in the U.S.
• Operating margin in the third quarter was 4.3% (3.9) excluding
restructuring charges and 3.3% (3.7) including restructuring charges.
• Diluted earnings per share were SEK 0.74 (0.68).
• Operating cash flow in the Industrial Operations amounted to SEK 0.9 billion (-5.3).
• Higher ambition in structural cost-reduction efforts and increased
expected restructuring charges in the Strategic Program 2013-2015.
“The activities within the Strategic Program 2013-2015 are being
implemented as planned. We have identified additional opportunities to
reduce our structural cost level and we are therefore increasing the
scope of our strategic program with the following activities: Implement
further cost-reduction activities in Volvo CE,
reorganize Group Trucks Sales in order to increase efficiency and
reduce costs and review what is core and non-core in in our IT
operations,” says Olof Persson, President and CEO. (Source: Volvo Group)
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