kscarbel2 Posted July 23, 2017 Share Posted July 23, 2017 Volvo Group Press Release / July 19, 2017 In Q2 2017 net sales increased by 12% to SEK 88.4 billion (78.9). Adjusted for currency movements and acquired and divested units sales increased by 6%. Adjusted operating income amounted to SEK 8,540 M (6,130), corresponding to an adjusted operating margin of 9.7% (7.8). Currency movements had a positive impact on operating income of SEK 350 M. Operating cash flow in the Industrial Operations amounted to SEK 11.9 billion (6.9). New Volvo VNL long-haul tractor launched in North America. CEO’S COMMENTS Continued profit improvement and strong cash flow The Volvo Group increased both sales and profitability during the second quarter. Compared with the second quarter last year, net sales increased by 12% and amounted to SEK 88.4 billion. The profitability continued to develop positively with an adjusted operating income of SEK 8.5 billion (6.1), which corresponds to an operating margin of 9.7% (7.8). All our business areas improved their operating income. Cash flow in the Industrial Operations was also strong and amounted to SEK 11.9 billion (6.9). The service business continued to develop favorably and grew by 3% compared with the same quarter last year on a currency adjusted basis. We continue to increase our focus on selling complete solutions combining products with services and financing to our customers. Recent trends on the truck markets continue with good demand in Europe, including a distinct recovery in Russia, and a gradual improvement in North and South America, with increased order intake. In Europe, Renault Trucks has improved its market share and Volvo Trucks kept its historically high share while growing it in Russia. Total truck deliveries were down 1% in the quarter driven by lower deliveries in North America. The adjusted operating margin was 9.6%, with the quarter being negatively affected by a stretched supply chain. Our competitive trucks continue to make their mark in the industry. Volvo Trucks and Renault Trucks came in first and second place in the “Young Professionals Truck Award 2017”, which is based on test driving by young truck drivers in Germany. In North America we took a very important step in July with the announcement of the new Volvo VNL series. It is a groundbreaking long-haul tractor with cutting-edge innovations in fuel efficiency, driver productivity, safety and connectivity solutions to maximize uptime. The truck features a new cab with improved aerodynamics and interior, including an all-new, 70-inch sleeper. Together with the Volvo VNR for regional haul, which was announced in April, Volvo will have a product program in North America that is the strongest ever. The new trucks will be ramped-up in production gradually during the second half of 2017. Following the introduction in the first quarter, UD Trucks new heavy-duty and medium-duty truck series with associated services are now launched in an increasing number of markets. Most recently at a major customer event with UD Croner in Dubai. The new trucks strengthen the Group's competitiveness in Japan as well as in emerging markets in Asia and other parts of the world. We see good progress for UD Trucks in Japan, where market share has recovered to 17.8% (16.5). Demand for construction equipment continues to improve in Europe and China, and also with a clear recovery in the mining segment in many parts of the world. Volvo CE’s sales increased by 36% compared to a year ago and amounted to SEK 18.5 billion. Thanks to Volvo CE working intensively to reduce its cost base and keeping tight control over costs now as volumes return, the increased sales has resulted in a significant improvement in profitability with an adjusted operating margin of 13.3%. In general Volvo CE has very competitive products and services with good positions in key markets and segments. We will continue to drive the transformation program that focuses on core products and segments, continuous improvement, improved quality and reduced costs. Volvo Buses’ profitability was stable with an adjusted operating margin of 4.6%. During the quarter Volvo Buses secured a frame agreement for 360 Prevost coaches to Greyhound/First Group, the largest order to date in North America. In the seasonally strong second quarter, not least on the marine side, Volvo Penta's sales increased by 15% and they generated an adjusted operating margin of 15.5%. The positive development with good growth also applies to industrial engines, where Volvo Penta is currently investing to further strengthen their customer offering. In July, Volvo Penta made a move in to the segment for outboard engines when they acquired a majority in the US-based, innovative outboard engine manufacturer Seven Marine. Volvo Financial Services continued to have a good return on equity with low credit losses. Financial services are a very important part of our complete solutions offer and they deepen the relationship with our customers. We have a clear strategy on how to improve the Volvo Group's profitability and grow the service business while we continue to invest in new technologies. We have strong, Group-wide assets that business areas can utilize. At the same time, we are in the process of decentralizing responsibility and creating value chains that are more regional to drive accountability, simplicity and speed to better manage changes in demand. But above all, we are building a culture where continuous improvement is the guiding principle to better serve our customers. Martin Lundstedt President and CEO Report on the second quarter 2017(PDF, 0.9 MB) Presentation material(PDF, 9.9 MB) . Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted July 23, 2017 Author Share Posted July 23, 2017 The Numbers In Q2 2017, sales (deliveries) from Volvo Group’s truck operations amounted to 52,058* units, down 1 percent from 52,670 units in Q2 2016. Q2 2017 Volvo brand truck sales (overall) rose to 28,510 units globally, up 1 percent from 28,255 units in Q2 2016. Q2 2017 Volvo brand truck sales in North America plunged to 5,665 units, down 17 percent from 6,786 units in Q2 2016. North American Volvo brand truck sales in review: 17 percent sales decline in Q2 2017 versus Q2 2016 40 percent sales decline in Q1 2017 versus Q1 2016 49 percent sales decline in Q4 2016 versus Q4 2015 49 percent sales decline in Q3 2016 versus Q3 2015 39 percent sales decline in Q2 2016 versus Q2 2015 41 percent sales decline in Q1 2016 versus Q1 2015 4 percent sales decline in Q4 2015 versus Q4 2014 12 percent sales increase in Q3 2015 versus Q3 2014 27 percent sales increase in Q2 2015 versus Q2 2014 27 percent sales increase in Q1 2015 versus Q1 2014 15 percent sales increase in Q4 2014 versus Q4 2013 24 percent sales increase in Q3 2014 versus Q3 2013 17 percent sales increase in Q2 2014 versus Q2 2013 93 percent sales increase in Q1 2014 versus Q1 2013 19 percent sales increase in Q4 2013 versus Q4 2012 10 percent sales increase in Q3 2013 versus Q3 2012 7 percent sales increase in Q2 2013 versus Q2 2012 39 percent sales decline in Q1 2013 versus Q1 2012 17 percent sales decline in Q4 2012 versus Q4 2011 7 percent sales decline in Q3 2012 versus Q3 2011 19 percent sales increase in Q2 2012 versus Q2 2011 38 percent sales increase in Q1 2012 versus Q1 2011 66 percent sales increase in Q4 2011 versus Q4 2010 91 percent sales increase in Q3 2011 versus Q3 2010 152 percent sales increase in Q2 2011 versus Q2 2010 124 percent sales increase in Q1 2011 versus Q1 2010 78 percent sales increase in Q4 2010 versus Q4 2009 103 percent sales increase in Q3 2010 versus Q3 2009 58 percent sales increase in Q3 2010 versus Q3 2009 1 percent sales decline in Q1 2010 versus Q1 2009 Q2 2017 Volvo brand truck sales in Europe rose to 15,745 units, up 9 percent from 14,430 units in Q2 2016. Q2 2017 Volvo brand truck sales in Africa/Oceania (includes Australia, New Zealand) declined to 1,345 units, down 7 percent from 1,454 units in Q2 2016. Q2 2017 Mack brand truck sales (overall) fell to 5,507 units globally, down 1 percent from 5,588 units in Q2 2016. Global Mack brand truck sales in review: 1 percent sales decline in Q2 2017 versus Q2 2016 24 percent sales decline in Q1 2017 versus Q1 2016 42 percent sales decline in Q4 2016 versus Q4 2015 40 percent sales decline in Q3 2016 versus Q3 2015 22 percent sales decline in Q2 2016 versus Q2 2015 21 percent sales decline in Q1 2016 versus Q1 2015 2 percent sales decline in Q4 2015 versus Q4 2014 6 percent sales increase in Q3 2015 versus Q3 2014 9 percent sales increase in Q2 2015 versus Q2 2014 16 percent sales increase in Q1 2015 versus Q1 2014 30 percent sales increase in Q4 2014 versus Q4 2013 24 percent sales increase in Q3 2014 versus Q3 2013 2 percent sales increase in Q2 2014 versus Q2 2013 31 percent sales increase in Q1 2014 versus Q1 2013 14 percent sales increase in Q4 2013 versus Q4 2012 13 percent sales decline in Q3 2013 versus Q3 2012 15 percent sales decline in Q2 2013 versus Q2 2012 38 percent sales decline in Q1 2013 versus Q1 2012 25 percent sales decline in Q4 2012 versus Q4 2011 37 percent sales increase in Q3 2012 versus Q3 2011 48 percent sales increase in Q2 2012 versus Q2 2011 54 percent sales increase in Q1 2012 versus Q1 2011 45 percent sales increase in Q4 2011 versus Q4 2010 34 percent sales increase in Q3 2011 versus Q3 2010 99 percent sales increase in Q2 2011 versus Q2 2010 37 percent sales increase in Q1 2011 versus Q1 2010 38 percent sales increase in Q4 2010 versus Q4 2009 16 percent sales increase in Q3 2010 versus Q3 2009 7 percent sales decline in Q2 2010 versus Q2 2009 36 percent sales increase in Q1 2010 versus Q1 2009 Q2 2017 Mack brand truck sales in North America fell to 5,023 units, down 3 percent from 5,192 units in Q2 2016. North American Mack brand truck sales in review: 3 percent sales decline in Q2 2017 versus Q2 2016 27 percent sales decline in Q1 2017 versus Q1 2016 46 percent sales decline in Q4 2016 versus Q4 2015 41 percent sales decline in Q3 2016 versus Q3 2015 21 percent sales decline in Q2 2016 versus Q2 2015 21 percent sales decline in Q1 2016 versus Q1 2015 1 percent sales increase in Q4 2015 versus Q4 2014 6 percent sales increase in Q3 2015 versus Q3 2014 8 percent sales increase in Q2 2015 versus Q2 2014 15 percent sales increase in Q1 2015 versus Q1 2014 38 percent sales increase in Q4 2014 versus Q4 2013 31 percent sales increase in Q3 2014 versus Q3 2013 9 percent sales increase in Q2 2014 versus Q2 2013 49 percent sales increase in Q1 2014 versus Q1 2013 31 percent sales increase in Q4 2013 versus Q4 2012 4 percent sales decline in Q3 2013 versus Q3 2012 16 percent sales decline in Q2 2013 versus Q2 2012 42 percent sales decline in Q1 2013 versus Q1 2012 32 percent sales decline in Q4 2012 versus Q4 2011 49 percent sales increase in Q3 2012 versus Q3 2011 68 percent sales increase in Q2 2012 versus Q2 2011 61 percent sales increase in Q1 2012 versus Q1 2011 47 percent sales increase in Q4 2011 versus Q4 2010 30 percent sales increase in Q3 2011 versus Q3 2010 138 percent sales increase in Q2 2011 versus Q2 2010 34 percent sales increase in Q1 2011 versus Q1 2010 36 percent sales increase in Q4 2010 versus Q4 2009 21 percent sales increase in Q3 2010 versus Q3 2009 12 percent sales decline in Q2 2010 versus Q2 2009 63 percent sales increase in Q1 2010 versus Q1 2009 Q2 2017 Mack brand truck sales in South America rose to 221 units, up 41 percent from 157 units in Q2 2016. Q2 2017 Mack brand truck sales in Africa/Oceania (includes Australia, New Zealand) rose to 263 units, up 11 percent from 238 units in Q2 2016. Q2 2017 Renault Truck brand sales (overall) declined to 13,110 units globally, down 4 percent from 13,650 units in Q2 2016. Q2 2017 Renault Truck brand sales in Europe declined to 11,941 units, down 3 percent from 12,304 units in Q2 2016. (Q2 2017 Renault Truck brand medium/heavy truck sales in Europe rose to 7,808 units globally, up 2 percent from 7,683 units in Q2 2016. Q2 2017 Renault Truck brand light truck sales in Europe declined to 4,133 units globally, down 11 percent from 4,621 units in Q2 2016.) Q2 2017 UD (Nissan Diesel) brand sales (overall) rose to 4,931 units, down 5 percent from 5,177 units in Q2 2016. Q2 2017 UD (Nissan Diesel) brand sales in Asia rose to 4,021 units, down 3 percent from 4,147 units in Q2 2016. Total Global Deliveries by Brand Q2 2017 Q2 2016 % Change Volvo 28,510 28,255 1 Renault Trucks 13,110 13,650 -4 UD (Nissan Diesel) 4,931 5,177 -5 Mack 5,507 5,588 -1 Total Deliveries 52,058 52,670 -1 Total Global Deliveries by Truck Size Q2 2017 Q2 2016 % Change Heavy Duty (>16 metric tons) 44,075 43,265 2 Medium Duty (7-16 metric tons) 3,762 4,467 -16 Light Duty (<7 metric tons) 4,221 4,938 -15 Total Deliveries 52,058 52,670 -1 Total Global Deliveries by Region Q2 2017 Q2 2016 % Change Europe 27,686 26,734 4 Heavy & medium 23,553 22,113 7 Light duty 4,133 4,621 -11 North America 10,720 12,039 -11 South America 2,692 2,549 6 Asia 7,823 7,963 -2 Africa & Oceania* 3,137 3,385 -7 Total Deliveries 52,058 52,670 -1 * includes Australia, New Zealand Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted July 23, 2017 Author Share Posted July 23, 2017 Renault Trucks’ global sales results.....versus the Volvo brand: January 2015 Renault up 24% Volvo down 4% February 2015 Renault up 26% Volvo down 13% 1st quarter 2015 Renault up 35% Volvo down 8% April 2015 Renault up 12% Volvo up 9% May 2015 Renault up 5% Volvo down 1% 2nd quarter 2015 Renault up 7% Volvo down 4% July 2015 Renault up 8% Volvo down 5% August 2015 Renault up 60% Volvo down 6% 3rd quarter 2015 Renault up 20% Volvo down 2% October 2015 Renault up 16% Volvo down 1% November 2015 Renault up 54% Volvo down 10% 4th quarter 2015 Renault up 29% Volvo down 7% Full Year 2015 Renault up 22% Volvo down 4% 1st quarter 2016 Renault up 8% Volvo down 8% 2nd quarter 2016 Renault up 12% Volvo down 9% 3rd quarter 2016 Renault down 5% Volvo down 12% 4th quarter 2016 Renault down 5% Volvo down 8% Full Year 2016 Renault up 2% Volvo down 9% 1st quarter 2017 Renault up 3% Volvo down 2% 2nd quarter 2017 Renault down 4% Volvo up 1% Quote Link to comment Share on other sites More sharing options...
Red Horse Posted July 23, 2017 Share Posted July 23, 2017 Interesting-In CEO's comments not one mention of "Mack". Kevin-What is reference to "bus frames". Does Volvo own Prevost now or are they just building them frames?? Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted July 23, 2017 Author Share Posted July 23, 2017 44 minutes ago, Red Horse said: Interesting-In CEO's comments not one mention of "Mack". Kevin-What is reference to "bus frames". Does Volvo own Prevost now or are they just building them frames?? Volvo has owned all of Prevost (and subsidiary Nova Bus) since 2004. I know that back in 2007, Prevost engine choices were either Volvo D13 or Detroit Series 60. Today there is no choice - Volvo D13. Quote Link to comment Share on other sites More sharing options...
james j neiweem Posted July 23, 2017 Share Posted July 23, 2017 Why is Renault so strong compared to Volvo/Mack? Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted July 23, 2017 Author Share Posted July 23, 2017 6 hours ago, james j neiweem said: Why is Renault so strong compared to Volvo/Mack? Because Renault still has "truck people". They are well liked around the world. Despite Volvo trying to restrain Renault and limit some global markets to a Volvo presence (no Renault......or Mack), Renault still embarrasses Volvo in sales performance. It pays off to have a sales force that knows something about trucks. Quote Link to comment Share on other sites More sharing options...
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