Press release - AB Volvo
The Volvo Group’s sales continued to grow during the second quarter. Net sales rose 6% to SEK 83.9 billion – representing the highest sales so far for a second quarter. Operating income totaled SEK 7.3 billion, which includes a positive impact of SEK 495 M as a result of VAT credits in Brazil. The operating margin of 8.7% is slightly lower than the year-earlier quarter, due primarily to a change in market mix.
• In the second quarter, net sales increased by 6% to SEK 83.9 billion (79.0) which is the highest sales so far for a second quarter. Adjusted for currency movements and acquired and divested units, sales increased by 1%.
• The second quarter operating income amounted to SEK 7,335 M (7,648), including a positive impact of SEK 495 M from VAT credits in Brazil relating to previous years. Compared to the second quarter of 2011, changes in exchange rates had a positive impact of SEK 513 M.
• Operating margin in the second quarter was 8.7% (9.7).
• In the second quarter, basic and diluted earnings per share amounted to SEK 2.40 (2.52).
• In the second quarter, operating cash flow in the Industrial Operations was positive in an amount of SEK 2.5 billion (positive SEK 5.2 billion).
• AB Volvo acquires shares in engine manufacturer Deutz AG and increases ownership to 25%.
• AB Volvo divests Volvo Aero to British GKN for SEK 6.9 billion.
“After the first quarter, we have taken two strategically important steps. One of these was the sale of Volvo Aero. The transaction will free up capital that can be utilized to expand our core operations, notably in growth markets such as Asia. The other step was that we signed an agreement to increase our shareholding in the German engine manufacturer, Deutz, from 6.7% to slightly more than 25%. For many years, Deutz has been our strategic partner on medium-duty engines for construction equipment, a segment in which they are specialists,”
Olof Persson, President and CEO.
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July 24, 2012
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, +1 212 418 7432