Volvo Group – second quarter 2015 performance report

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Volvo Press Release / July 17, 2015

The second quarter followed the trend from the fourth quarter of 2014 and the beginning of the year. The Group’s products are well received by the market, and the activities in the efficiency programs are progressing according to plan and contribute to yet another quarter of earnings improvements.

• In the second quarter net sales increased by 17% to SEK 84.8 billion (72.6). Adjusted for currency movements and acquired and divested units sales increased by 4%.
• Operating income amounted to SEK 8,116 M (4,325) excluding restructuring charges of SEK 799 M (762). Operating income includes a positive impact of SEK 2,137 M from the sale of shares in Eicher Motors Limited. Currency exchange rates had a positive impact of SEK 1,804 M.
• Operating income excluding restructuring charges and the capital gain from the sale of shares amounted to SEK 5,979 M (3,284*), corresponding to an underlying operating margin of 7.1% (4.5).
• Operating cash flow in the Industrial Operations amounted to SEK 8.6 billion (4.0).
• Net financial debt in the Industrial Operations amounted to 16% of equity.
• Truck order intake decreased by 6% and order intake of construction equipment decreased by 27%.

* Excluding the capital gain from the sale of real estate and the release of a provision for Volvo Rents in the second quarter 2014, combined amounting to SEK 1,041 M.

For a PDF version of the report, please click here: Volvo Group Q2 2015 PDF

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By 5:00pm last Friday, Volvo stock was down 6 percent due to the decline in orders. (http://www.gp.se/nyheter/goteborg/1.2779196-volvo-okar-lonsamheten-men-orderingangen-minskar)

Board chairman Carl-Henric Svanberg's open mind towards selling Volvo's construction unit is gathering support.