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Volvo Group - Nine months ended September 30, 2008

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

Volvo Group

 

 

 

 

 

 

Third quarter

First nine months

 

2008

2007

2008

2007

Change, %

Net sales Volvo Group, SEK M

69,604

68,367

226,713

200,849

13

Operating income Volvo Group, SEK M

3,177

5,010

16,850

16,457

2

  Operating income Industrial operations, SEK M

2,786

4,555

15,691

15,186

3

  Operating income Customer Finance, SEK M

391

454

1,159

1,270

(9)

Operating margin Volvo Group, %

4.6

7.3

7.4

8.2

 

Income after financial items, SEK M

2,898

4,571

16,520

15,948

4

Income for the period, SEK M

2,000

3,149

11,364

10,935

4

Diluted earnings per share, SEK

0.98

1.54

5.58

5.37

 

Return on shareholders' equity, rolling 12 months, %

 

 

18.9

17.3

 

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