Press release - AB Volvo
The Volvo Group’s sales for the second quarter of 2013 recovered considerably compared with the first quarter of 2013 and amounted to SEK 72.8 billion, up 25%. Profitability also improved thanks to higher sales volumes and better capacity utilization in our plants. Despite having to increase our warranty reserves by SEK 900 M for legacy truck quality issues, operating income totaled SEK 3.3 billion, corresponding to an operating margin of 4.5% compared with 0.8% in the first quarter.
• In the second quarter, net sales increased by 25% to SEK 72.8 billion compared to the first quarter. Compared to the second quarter of 2012 sales decreased by 12% and by 4% adjusted for currency movements and acquired and divested units.
• The second quarter operating income amounted to SEK 3,262 M compared with SEK 482 M in the first quarter of 2013 and SEK 7,709 M in the second quarter of 2012. Compared with the second quarter of 2012, changes in currency exchange rates had a negative impact of SEK 1,210 M.
• Operating margin in the second quarter was 4.5% compared with 0.8% in the first quarter of 2013 and 9.3% in the second quarter of 2012.
• In the second quarter, earnings per share were SEK 0.99 compared with a negative SEK 0.15 in the first quarter of 2013 and SEK 2.41 in the second quarter of 2012.
• In the second quarter, operating cash flow in the Industrial Operations was positive in an amount of SEK 4.1 billion.
• During the quarter, Renault Trucks launched a completely new range of trucks for distribution, construction and long-haulage. Volvo Trucks launched four new truck models. Altogether this is the biggest product renewal in the Group’s history.
“After a weak start to the year, the Group’s sales and profitability recovered during the second quarter of 2013. The renewal of the Group’s truck offering entered an even more intensive phase and during the quarter we presented a completely new product portfolio within Renault Trucks, as well as a number of important new trucks for Volvo. Thus far, the trucks have been well received by customers and dealers, which is of utmost importance since these new trucks will be highly significant to the Group’s sales and profitability in the coming years.” Olof Persson, President and CEO.
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