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Volvo Group – nine months ended September 30, 2007

During the third quarter, we experienced continued split development in our markets. Demand remained strong for the Volvo Group’s products and services in most of our markets in Europe, Asia and South America, while demand continued to be weak in North America.
  • Net sales increased by 13% to SEK 68.4 billion (60.5) in the third quarter
    Adjusted for changes in exchange rates and acquired and divested units, net sales decreased by 1%

  • Operating income rose 54% to SEK 5,010 M (3,260)* in the third quarter

  • Income for the period decreased by 20% to SEK 3,149 M (3,939)* in the third quarter

  • Diluted earnings per share amounted to SEK 1.54 (1.94)* in the third quarter

  • The Industrial Operation’s operating cash flow was negative in an amount of SEK 0.4 billion (neg. 0.4 billion) in the third quarter

 

Volvo Group

Third quarter

First nine months

 

2007

2006*

2007

2006*

Change

Net sales Volvo Group

68,367

60,479

200,849

191,208

5%

Operating income Volvo Group

5,010

3,260

16,457

15,229

8%

  Operating income Industrial operations

4,555

2,834

15,186

13,915

9%

  Operating income Customer Finance

454

426

1,270

1,314

(3%)

Operating margin Volvo Group

7.3

5.4

8.2

8.0

3%

Income after financial items

4,571

3,144

15,948

15,073

6%

Income for the period

3,149

3,939

10,935

12,617

(13%)

Diluted earnings per share, SEK

1.54

1.94

5.37

6.21

(14%)

Return on shareholders' equity, %

 

 

17.3

19.3

 

The third quarter of 2006 included a reversal of a valuation reserve for deferred taxes and an adjustment of goodwill. As an effect, operating income during the third quarter of 2006 was negatively affected in an amount of SEK 1,712 M while income taxes decreased by SEK 2,048 M. The total effect on income for the period was positive in an amount of SEK 336 M.


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