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Volvo Group – Report on Operations 2007

The Volvo Group concluded an intense 2007 with a fourth quarter in which sales and operating income reached record levels.
  • Strong sales increase in the fourth quarter, up 25% to SEK 84.6 billion (67.6)
    Net sales for the full year increased by 10% to SEK 285.4 billion (258.8)

  • In the fourth quarter, operating income rose 12% to SEK 5,775 M (5,170)
    Operating income for the full year rose 9% to SEK 22,231 M (20,399)

  • In the fourth quarter, income for the period rose 11% to SEK 4,094 M (3,701)
    Income for the year declined by 8% to SEK 15,028 M (16,318)

  • In the fourth quarter, diluted earnings per share rose to SEK 2.00 (1.83)
    Diluted earnings per share for the full year amounted to SEK 7.37 (8.03)

  • The Board of Directors proposes an ordinary dividend of SEK 5.50 per share

  • In the fourth quarter, the Industrial Operations had a very strong operating cash flow amounting to SEK 12.4 billion (7.4)

Volvo Group

Fourth quarter

Year

 SEK M

2007

2006

2007

2006 1)

Change

Net sales Volvo Group

84,556

67,627

285,405

258,835

10%

Operating income Volvo Group

5,775

5,170

22,231

20,399

9%

  Operating income Industrial operations

5,397

4,798

20,583

18,713

10%

  Operating income Customer Finance

378

372

1,649

1,686

(2%)

Operating margin Volvo Group

6.8

7.6

7.8

7.9

 

Income after financial items

5,609

5,226

21,557

20,299

6%

Income for the period

4,094

3,701

15,028

16,318

(8%)

Diluted earnings per share, SEK

2.00

1.83

7.37

8.03

 

Return on shareholders' equity, %

 

 

18.1

19.6

 

1) 2006 included a reversal of a valuation reserve for deferred taxes and an adjustment of goodwill. As an effect, operating income in 2006 was negatively affected in the 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 the amount of SEK 336 M.
 
Find the full report under Interim reports

Contact Investor Relations:
Christer Johansson +46 31 66 13 34
Patrik Stenberg +46 31 66 13 36
John Hartwell +1 212 418 7432