Volvo Group – the second quarter 2014
GÖTEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
When we summarize the market development for the second quarter and begin with the Truck operation, we can conclude that our business in North America and Japan had positive trends in market shares, volumes and capacity utilization. Following the weak first quarter, the European market recovered gradually during the second quarter, but the improvement started somewhat later than we had anticipated. During the quarter, the Brazilian market developed as we anticipated, with lower order intake and sales. With respect to Construction Equipment, the second quarter has been characterized by a considerable decline in the Chinese market.
· In the second quarter net sales amounted to SEK 72.6 billion (72.8). Adjusted for currency movements and acquired and divested units sales decreased by 1%.
· The second quarter operating income amounted to SEK 4,325 M (3,279) excluding restructuring charges of SEK 762 M (16). The operating income includes a positive effect totaling SEK 1,041 M from a capital gain on the sale of commercial real estate and the release of a provision for Volvo Rents. Currency exchange rates had a negative impact of SEK 176 M.
· Operating margin in the second quarter was 6.0% (4.5) excluding restructuring charges and 4.9% (4.5) including restructuring charges.
· In the second quarter diluted earnings per share were SEK 1.22 (0.99).
· In the second quarter operating cash flow in the Industrial Operations amounted to SEK 4.0 billion (4.1).
“With the closing of the second quarter, we are halfway in the strategy program that will continue until the end of 2015 and which shall increase the Volvo Group’s profitability. The program is progressing according to plan and we are beginning to see positive effects from all the decisions we made in 2012 and 2013. We are slightly ahead of plan with respect to our objective of increasing the gross margin on our trucks through improved price realization, while we will strengthen our focus on lowering our operating costs,” says Olof Persson, President and CEO.
For an English PDF version of the report, please click here: Volvo Group Q2 2014 PDF (http://www3.volvo.com/investors/finrep/interim/2014/q2/q2_2014_eng.pdf)
For a mobile version of the report please click here: Volvo Group Q2 2014 Mobile (http://www3.volvo.com/investors/finrep/interim/2014/q2/eng/mobile/index.html)
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.
Aktiebolaget Volvo (publ) 556012-5790
Investor Relations, VHQ
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00
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 +1 201 252 8844
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 July 18, 2014.
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