The market development in the third quarter followed the overall direction from the second quarter with good momentum in North America and Japan and continued slow development in the emerging markets in South America and Asia. The Volvo Group increased its profitability compared to last year thanks to improvement activities and that the Group has been able to partly mitigate the negative factors affecting some markets. · In the third quarter net sales amounted to SEK 67.2 billion (64.9). Adjusted for currency movements and acquired and divested units sales were on the same level as last year. · Operating income was SEK 2,908 M (2,502) excluding restructuring charges of SEK 659 M (104). Currency exchange rates had a positive impact of SEK 485 M. The third quarter was negatively impacted by a provision of SEK 422 M from a litigation in the U.S. · Operating margin in the third quarter was 4.3% (3.9) excluding restructuring charges and 3.3% (3.7) including restructuring charges. · Diluted earnings per share were SEK 0.74 (0.68). · Operating cash flow in the Industrial Operations amounted to SEK 0.9 billion (-5.3). · Higher ambition in structural cost-reduction efforts and increased expected restructuring charges in the Strategic Program 2013-2015. “The activities within the Strategic Program 2013-2015 are being implemented as planned. We have identified additional opportunities to reduce our structural cost level and we are therefore increasing the scope of our strategic program with the following activities: Implement further cost-reduction activities in Volvo CE, reorganize Group Trucks Sales in order to increase efficiency and reduce costs and review what is core and non-core in in our IT operations,” says Olof Persson, President and CEO. For an English PDF version of the report, please click here: Volvo Group Q3 2014 PDF (http://www3.volvo.com/investors/finrep/interim/2014/q3/q3_2014_eng.pdf) For image download: http://images.volvogroup.com/latelogin.jspx?records=AB+Volvo:3400 Press and Analysts Conference 09.00 AM CEST. An on-line presentation of the report, followed by a question-and-answer session will be webcast at 09.00 CEST. Conference call for investors and analysts 3.00 PM CEST. Aktiebolaget Volvo (publ) 556012 -5790 Contacts Investor Relations: Investor Relations, VHQ Christer Johansson +46 31 66 13 34 SE-405 08 Göteborg, Sweden Patrik Stenberg +46 31 66 13 36 Tel +46 31 66 00 00 Anders Christensson +46 31 66 11 91 John Hartwell +1 201 252 8844 www.volvogroup.com For more stories from the Volvo Group, please visit http://www.volvogroup.com/globalnews. The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 110,000 people, has production facilities in 18 countries and sells its products in more than 190 markets. In 2013 the Volvo Group’s sales amounted to about SEK 270 billion. The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on NasdaqOMX Stockholm. For more information, please visit www.volvogroup.com or www.volvogroup.mobi if you are using your mobile phone. 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 oktober 24, 2014.
Volvo Group – the third quarter 2014
| Source: Volvo, AB
Attachments
