Volvo Group – the third quarter 2020

“In Q3, utilization of trucks and machines gradually improved as COVID-19 restrictions were eased. Towards the end of the quarter transport activity was back on roughly the same level as a year ago in most markets. This led to an improved sentiment among our customers, which is reflected in increased order intake for trucks, engines and construction equipment as well as a gradually improving service business. In the last two quarters, our organization and business partners have shown great volume flexibility by first handling a dramatic volume decline and then a steep recovery with good productivity maintained. However, the weak order intake in the previous quarter impacted the Group’s net sales in Q3, which amounted to SEK 76.9 billion – 16% lower than a year ago adjusted for currency. Our service business is more stable, with currency-adjusted revenues coming down by only 1% compared to Q3 last year and with a sequential improvement. Despite the sales decline we achieved an adjusted operating margin of 9.4% (11.0) thanks to significant cost reductions,” says Martin Lundstedt, President and CEO.
1860x1050-volvo-trucks-vnr-lights

•    In Q3 2020, net sales amounted to SEK 76.9 billion (98.7). Adjusted for currency movements, net sales decreased by 16%.

•    Adjusted operating income amounted to SEK 7,217 M (10,885), corresponding to an adjusted operating margin of 9.4% (11.0).

•    Reported operating income amounted to SEK 7,508 M (10,885).

•    Currency movements had a negative impact on operating income of SEK 1,499 M.

•    Diluted earnings per share amounted to SEK 2.81 (3.67).

•    Operating cash flow in the Industrial Operations was positive in an amount of SEK 11,712 M (1,831).

 

Press and Analyst Conference Call. An on-line presentation of the report, followed by a question-and-answer session will be webcast starting at 09.00 CEST. More information is available on the Volvo Group Investor page.
 

This information is information that AB Volvo (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07.20 CEST on October 16, 2020.

 

Aktiebolaget Volvo (publ) 556012-5790
Investor Relations    
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00    
www.volvogroup.com

Contact Media Relations:
Claes Eliasson              +46 765 53 72 29

Contacts Investor Relations:
Christer Johansson      +46 739 02 25 22
Johan Bartler                +46 739 02 21 93
Anders Christensson    +46 765 53 59 66

 

October 16, 2020
 

For more information, please visit volvogroup.com
The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs almost 100.000 people and serves customers in more than 190 markets. In 2019, net sales amounted to about SEK 432 billion (EUR 40.5 billion). Volvo shares are listed on Nasdaq Stockholm.

Work with us

Get The Latest First

Subscription Service

  • Press Releases
  • Interim Reports
  • Annual Reports
When signing up for the subscription your email address will be stored by Cision in order to provide you the service. If you wish to stop the subscription please use the opt-out link in the end of each press release e-mail
THANK YOU
Subscription Activated

Related News

Volvo Trucks Awarded $21.7M from U.S. EPA and South Coast AQMD to Deploy 70 Class 8 VNR Electric Zero-Emission Trucks

This award enables the nation’s largest commercial deployment of Class 8 battery-electric trucks....

The Volvo Group brings forward the report for the third quarter to October 16th, 2020

The Volvo Group’s report for the third quarter will be completed earlier than expected. Therefore, the report will be published on Friday October 16th, 2020 at 07.20 a.m. CEST instead of as previously announced on Tuesday October 20th, 2020.    ...

Research on how to keep feeding the planet while preserving wildlife rewarded with the Volvo Environment Prize 2020

The world is losing species at an alarming rate. The forests and wild areas of the Earth are rapidly transformed into farmlands, pushing wildlife into steep decline. A way to reverse this catastrophic trend is to change the working lands – ...