Press releases and news

Volvo Construction Equipment’s new Shippensburg manufacturing facility has been built to meet the highest environmental and sustainable standards.

During the second quarter, the Volvo Group’s sales continued to increase as a result of the gradual recovery in demand in most of the Group’s markets. At the same time, profitability continued to improve thanks to the sales increase, strict control over our costs and a good productivity development in our industrial system. Adjusted for exchange-rate fluctuations, the Group’s sales rose 31% compared with the second quarter of 2009. Operating income reached SEK 4.8 billion in the second quarter with an operating margin of 6.9%. Operating cash flow in the Industrial Operations was strong and amounted to SEK 8.5 billion.

It is light, white and clean. Thanks to a new, patented solution, the Group’s new foundry in Skövde is totally unique. “This is the Rolls-Royce of foundries. There is nothing like it anywhere in the world,” says Gert Karlsson, head of the smelting plant.

Volvo Aero has signed an agreement to sell its US subsidiary Volvo Aero Services. The sale is expected to have a negative impact of approximately SEK 200 M on the Volvo Group’s operating income during the second quarter. At the same time, the transaction is expected to have a positive effect of about SEK 400 M on the Group’s net financial debt in the third quarter.