by Press information – AB Volvo
After a first and second quarter with record sales and record income, sales growth decelerated much more rapidly than expected during the third quarter, as visible in the reported earnings. The downturn in the economy has been significantly exacerbated by the global financial crisis.
- Net sales increased by 2% to SEK 69.6 billion (68.4) in the third quarter
- In the third quarter, operating income declined by 37% to SEK 3,177 M (5,010)
- In the third quarter, basic and diluted earnings per share declined by 36% to SEK 0.98 (1.54)
- Operating cash fl ow in Industrial Operations was negative in amount of SEK 6.1 billion (neg. 0.4)
- Significant impact from increased costs for raw materials and components
- Increased research and development efforts ahead of new emission regulations and for hybrid projects
- Slowdown in demand and restructuring costs
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Volvo Group |
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Third quarter |
First nine months |
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2008 |
2007 |
2008 |
2007 |
Change, % |
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Net sales Volvo Group, SEK M |
69,604 |
68,367 |
226,713 |
200,849 |
13 |
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Operating income Volvo Group, SEK M |
3,177 |
5,010 |
16,850 |
16,457 |
2 |
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Operating income Industrial operations, SEK M |
2,786 |
4,555 |
15,691 |
15,186 |
3 |
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Operating income Customer Finance, SEK M |
391 |
454 |
1,159 |
1,270 |
(9) |
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Operating margin Volvo Group, % |
4.6 |
7.3 |
7.4 |
8.2 |
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Income after financial items, SEK M |
2,898 |
4,571 |
16,520 |
15,948 |
4 |
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Income for the period, SEK M |
2,000 |
3,149 |
11,364 |
10,935 |
4 |
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Diluted earnings per share, SEK |
0.98 |
1.54 |
5.58 |
5.37 |
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Return on shareholders' equity, rolling 12 months, % |
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18.9 |
17.3 |
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Find the full report under Interim reports
October 24, 2008
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
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