The fourth quarter for the Volvo Group was characterized by a high activity
level, with a number of product launches. We have entered into 2014 with a new
product portfolio that will strengthen the Group’s competitiveness. During 2013,
extra costs associated with the product renewal put pressure on the Group’s
profitability, and this was also the case in the fourth quarter. In the fourth
quarter, the Group’s net sales rose 8% year-on-year, and amounted to SEK 76.6
billion with an operating margin of 4.0% adjusted for restructuring charges and
the write-down of Volvo Rents. The seasonally good operating cash flow of SEK
10.3 billion in our Industrial Operations contributed to the strengthening of
our financial position.
· In the fourth quarter, net sales increased by 8% to SEK 76.6 billion (70.8).
Adjusted for currency movements and acquired and divested units net sales
increased by 13%.
· The fourth quarter operating income amounted to SEK 3,077 M (2,190)
excluding restructuring charges of SEK 581 M (990) and a write-down of Volvo
Rents of SEK 1,500 M. Including restructuring charges and the write-down
operating income amounted to SEK 996 M (1,200). Currency exchange rates had a
negative impact of SEK 1,007 M.
· Operating margin in the fourth quarter was 4.0% (3.1) excluding
restructuring charges and the write-down of Volvo Rents. Including restructuring
charges and the write-down operating margin amounted to 1.3% (1.7).
· In the fourth quarter, diluted earnings per share were SEK 0.24 (0.40).
· In the fourth quarter, operating cash flow in the Industrial Operations was
positive in an amount of SEK 10.3 billion (4.7), which contributed to a
reduction of the net financial debt-to-equity-ratio to 29.0%.
· The Board of Directors proposes a dividend of SEK 3.00 per share (3.00).
· Structural reduction of white-collar employees by 4,400 planned, including
the previously announced reduction of 2,000 consultants and employees, of which
a majority will be implemented during 2014.
“The year we have left behind us was characterized by extensive product
launches, which involved a lot of hard work in all parts of the Group and an
elevated cost level. Although we still have a couple of quarters ahead of us
before we are completely through the Group’s largest product renewal ever, this
year will be characterized by efficiency improvements, including a reduction in
activities and costs, as well as personnel reductions. This will play an
important part in the work to achieve the Group’s strategic and financial
targets,” says Olof Persson, President and CEO.
For an English PDF version of the report, please click here: Volvo Group Q4 2013
For a mobile version of the report please click here: Volvo Group Q4 2013
Aktiebolaget Volvo Contacts Investor Relations:
Investor Christer Johansson +46 31 66 13 34
SE-405 08 Patrik Stenberg +46 31 66 13 36
Tel +46 31 66 00 Anders Christensson +46 31 66 11 91
John Hartwell +1 201 252 8844
AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 07.20 a.m. February 6,
GlobeNewswire, a Nasdaq company, is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
2321 Rosecrans Avenue.
El Segundo, CA 90245 Phone: (800) 307-6627 Fax: (800) 307-3567
25 Basinghall Street,
London EC2V 5HA
UK Phone: +1 866-465-8454