Financial targets

  • The annual organic sales growth for the truck, bus and construction equipment
    operations, as well as Volvo Penta, shall be equal to or exceed a weighted-average for comparable competitors.
     
  • Each year, the operating margin for the truck, bus and construction equipment
    operations, as well as Volvo Penta, shall be ranked among the top two companies when benchmarked against relevant competitors.
     
  • The targeted capital structure is set for the Industrial Operations net financial debt excluding provisions for post-employment benefits, which shall be below 35% of shareholders’ equity under normal conditions.
     
  • The customer finance operations have a target of 12-15% return on shareholders’ equity (ROE) with an equity ratio equal not less than 8%. 

 In order to facilitate the benchmark for Financial Targets, the truck operations will be measured jointly with the bus operations whereas the construction equipment operations will be measured together with Volvo Penta. The following competitors are included in the respective comparison groups: 

Trucks and buses

Volvo CE and Volvo Penta

Daimler Brunswick
Iveco CAT
MAN  CNH
Navistar Cummins
Paccar Deere
Scania Hitachi Construction Machinery
Sinotruk Komatsu
Terex

Further information on the outcome is available in the Volvo Group's Annual Report.