Press release - AB Volvo
During the third quarter, the Volvo Group’s net sales decreased by 5% to SEK 64.9 billion. Operating income amounted to SEK 2,502 M excluding restructuring charges of SEK 104 M. Operating income was negatively impacted by changes in currency exchange rates as well as costs related to the launch of new trucks, changeovers to the new trucks in the industrial system and parallel production of new and old generations of trucks. Operating margin in the third quarter was 3.9% excluding restructuring charges.
• In the third quarter, net sales decreased by 5% to SEK 64.9 billion compared to SEK 68.3 billion in the third quarter of 2012. Adjusted for currency movements and acquired and divested units net sales increased by 3%.
• The third quarter operating income amounted to SEK 2,502 M (3,480) excluding restructuring charges of SEK 104 M (560). Compared with the third quarter of 2012, changes in currency exchange rates had a negative impact of SEK 1,068 M.
• Operating margin in the third quarter was 3.9% (5.1) excluding restructuring charges.
• In the third quarter, earnings per share were SEK 0.68 (0.69).
• In the third quarter, operating cash flow in the Industrial Operations was negative in an amount of SEK 5.3 billion (neg. 7.2).
• As part of the previously announced Group-wide efficiency program, a directional decision has been made to rationalize white collars in staff and support functions by approximately 2,000 employees and consultants. This rationalization comprises a large part of the announced SEK 5 billion of restructuring costs and SEK
“The Volvo Group’s third quarter was characterized by the ongoing comprehensive product renewal in the Group’s truck program and the fact that we entered a new phase of the Group’s development focused on taking actions to streamline and enhance the efficiency of our operations. The product renewal is the largest in the history of the Volvo Group, and it means that we are going to enter 2014 with a highly competitive product range.” Olof Persson, President and CEO.
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Contacts Investor Relations:
Christer Johansson, +46 31 66 13 34
Patrik Stenberg, +46 31 66 13 36
Anders Christensson, +46 31 66 11 91
John Hartwell, +1 201 252 8844