kscarbel2 Posted October 20, 2017 Share Posted October 20, 2017 Volvo Group Press Release / October 20, 2017 “In the third quarter both the Volvo Group’s sales and profitability continued to increase, with an especially strong performance in our construction equipment business. The quarter was also characterized by the completion of an historic upgrade of our North American truck lineup and further successes for our electric buses that continue to make inroads in new markets. From an overall perspective, market demand is strong, as evidenced by a 32% increase in truck orders and 45% in construction equipment orders,” says Martin Lundstedt, President and CEO. • In Q3 2017 net sales increased by 12% to SEK 77.2 billion (68.8). Adjusted for currency movements and acquired and divested units sales increased by 16%. • Adjusted operating income amounted to SEK 7,024 M (4,846), corresponding to an adjusted operating margin of 9.1% (7.0). Adjusted operating income excludes a capital gain of SEK 400 M from the sale of the Group’s holding in Deutz AG in Q3 2017. Adjusted operating income in Q3 2016 excluded a provision for the settlement with the European Commission of SEK 190 M. • Currency movements had a negative impact on operating income of SEK 223 M. • Operating cash flow in the Industrial Operations amounted to SEK 0.6 billion (2.1). • Mack Trucks’ new highway truck, Mack Anthem, launched in North America. CEO’S Comments Sales increase and continued profit improvement In the third quarter both the Volvo Group’s sales and profitability continued to increase, with an especially strong performance in our construction equipment business. The quarter was also characterized by the completion of an historic upgrade of our North American truck lineup and further successes for our electric buses that continue to make inroads in new markets. From an overall perspective, market demand is strong, as evidenced by a 32% increase in truck orders and 45% in construction equipment orders. Net sales increased by 12% to SEK 77 billion, with growth in all our businesses. We improved our profitability with Volvo Construction Equipment as the main contributor. Adjusted operating income improved to SEK 7.0 billion (4.8), corresponding to an adjusted operating margin of 9.1% (7.0). We see high activity levels with many of our customers, supporting the growth of our service business which on a currency adjusted basis increased by 5% in the quarter. In Europe, demand for trucks continues to be good with support from a strong freight environment. We see demand improving in both North and South America and most markets in Asia are on good levels. Our deliveries of trucks were up by 13% in the quarter with higher volumes in all regions. The adjusted operating margin in Trucks was 8.6%, somewhat better than last year but held back by the stretched situation in parts of our supply chain. We are moving ahead with a comprehensive renewal of the truck portfolio in North America. Earlier this year Volvo Trucks launched new regional and long haul trucks, and in September Mack Trucks announced an update of its existing range in the vocational and regional haul segments as well as a re-entry into the long haul segment with the new Mack Anthem sleeper cab. These product launches mark the biggest upgrade of our North American truck range in 20 years. We also continue to invest in new technologies [licensed use of Westport HPDI 2.0]]. In Europe, Volvo Trucks announced long and regional haul trucks running on liquefied natural gas or biogas. They have the same performance as the diesel -powered models, but their CO2 emissions are 20–100% lower depending on choice of fuel. Demand for construction equipment continues to grow in most markets. Volvo Construction Equipment has successfully managed to respond to the growing market demand with a volume increase of 48% while at the same time taking a significant step up in profitability with an adjusted operating margin of 13.4%. We also continue to gain market shares within our strongholds in the construction equipment market. During the quarter we produced the 75,000th articulated hauler, a product segment where we have more than a third of the world market. Volvo Buses leads the Group on the road to electrification and in October announced a new generation of its all-electric bus. Volvo 7900 Electric is equipped with next generation battery technology, significantly extending the operating range to up to 200 km. The all-electric bus is based on the Group’s modular electrical architecture that will also be the base for electrification of trucks, construction equipment and other industrial and marine applications. Volvo Buses had an operating margin of 3.3%. Volvo Penta’s sales increased by 8% driven by both marine and industrial engines, and their adjusted operating margin amounted to 13.3%. Volvo Financial Services delivered a good return on equity with low credit losses. Financial services are key in our work to deepen the relationship with customers, and there is still an untapped potential for VFS to increase the sales of financing and insurance packages for Group products. In August, new financial targets were introduced for the Volvo Group. The Group’s profitability target was set to exceed 10% operating margin over a business cycle, while the financial position target is that the Industrial operations shall have no net financial indebtedness, excluding pension liabilities. Looking ahead to the next couple of quarters, we will be working hard to secure the introduction and the ramp-up of production of the new truck portfolio in North America as well as working together with our suppliers to reduce inefficiencies due to supply constraints for our truck production. We continue to focus on a culture with decentralized account ability and actions that result in higher speed in our continuous improvement work. This focus together with acceleration in our development of new and modular technologies will continue to drive better performance and customer success. Martin Lundstedt President and CEO Volvo Group 3rd Quarter Report - http://mb.cision.com/Main/39/2372017/739173.pdf . Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted October 20, 2017 Author Share Posted October 20, 2017 The Numbers In Q3 2017, sales (deliveries) from Volvo Group’s truck operations amounted to 46,603* units, up 13 percent from 41,155 units in Q3 2016. Q3 2017 Volvo brand truck sales (overall) rose to 25,722 units globally, up 15 percent from 22,353 units in Q3 2016. Q3 2017 Volvo brand truck sales in North America rose to 5,076 units, up 9 percent from 4,645 units in Q3 2016. North American Volvo brand truck sales in review: 9 percent sales increase in Q3 2017 versus Q3 2016 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 Q3 2017 Volvo brand truck sales in Europe rose to 12,924 units, up 12 percent from 11,585 units in Q3 2016. Q3 2017 Volvo brand truck sales in Africa/Oceania (includes Australia, New Zealand) rose to 1,298 units, up 7 percent from 1,216 units in Q3 2016. Q3 2017 Mack brand truck sales (overall) rose to 5,100 units globally, up 29 percent from 3,963 units in Q3 2016. Global Mack brand truck sales in review: 29 percent sales increase in Q3 2017 versus Q3 2016 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 Q3 2017 Mack brand truck sales in North America rose to 4,624 units, up 29 percent from 3,581 units in Q3 2016. North American Mack brand truck sales in review: 29 percent sales increase in Q3 2017 versus Q3 2016 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 Q3 2017 Mack brand truck sales in South America rose to 203 units, up 39 percent from 146 units in Q3 2016. Q3 2017 Mack brand truck sales in Africa/Oceania (includes Australia, New Zealand) rose to 272 units, up 15 percent from 236 units in Q3 2016. Q3 2017 Renault Truck brand sales (overall) rose to 10,530 units globally, up 6 percent from 9,920 units in Q3 2016. Q3 2017 Renault Truck brand sales in Europe rose to 9,377 units, up 5 percent from 8,925 units in Q3 2016. (Q3 2017 Renault Truck brand medium/heavy truck sales in Europe rose to 6,072 units globally, up 10 percent from 5,540 units in Q3 2016. Q3 2017 Renault Truck brand light truck sales in Europe declined to 3,305 units globally, down 2 percent from 3,385 units in Q3 2016.) Q3 2017 UD (Nissan Diesel) brand sales (overall) rose to 5,251 units, up 7 percent from 4,919 units in Q3 2016. Q3 2017 UD (Nissan Diesel) brand sales in Asia rose to 4,207 units, up 5 percent from 4,022 units in Q3 2016. Total Global Deliveries by Brand Q3 2017 Q3 2016 % Change Volvo 25,722 22,353 15 Renault Trucks 10,530 9,920 6 UD (Nissan Diesel) 5,251 4,919 7 Mack 5,100 3,963 29 Total Deliveries 46,603 41,155 13 Total Global Deliveries by Truck Size Q3 2017 Q3 2016 % Change Heavy Duty (>16 metric tons) 39,882 34,255 16 Medium Duty (7-16 metric tons) 3,312 3,328 0 Light Duty (<7 metric tons) 3,409 3,572 -5 Total Deliveries 46,603 41,155 13 Total Global Deliveries by Region Q3 2017 Q3 2016 % Change Europe 22,301 20,510 9 Heavy & medium 18,996 17,125 11 Light duty 3,305 3,385 -2 North America 9,747 8,309 17 South America 3,046 2,413 26 Asia 8,338 6,923 20 Africa & Oceania* 3,171 3,000 6 Total Deliveries 46,603 41,155 13 * includes Australia, New Zealand Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted October 20, 2017 Author Share Posted October 20, 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% 3rd quarter 2017 Renault up 6% Volvo up 15% Quote Link to comment Share on other sites More sharing options...
james j neiweem Posted October 20, 2017 Share Posted October 20, 2017 Is Renault keeping Volvo global truck sales afloat? Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted October 20, 2017 Author Share Posted October 20, 2017 32 minutes ago, james j neiweem said: Is Renault keeping Volvo global truck sales afloat? Renault Trucks is, clearly, the best performing brand they have. And yet, Volvo treats Renault people as if they couldn't possibly know anything about trucks (sound familiar Mack brand distributors?). Quote Link to comment Share on other sites More sharing options...
kscarbel2 Posted October 21, 2017 Author Share Posted October 21, 2017 Volvo shares hit record as earnings top forecasts on surging truck demand Reuters / October 20, 2017 STOCKHOLM - Sweden’s AB Volvo reported a bigger-than-expected rise in quarterly core earnings on Friday as stronger demand for heavy trucks more than offset costs stemming from strains on its supply chain, sending its shares to a record high. Sweden’s biggest manufacturer by sales also raised its outlook for truck markets on both sides of the North Atlantic this year and forecast a further strong recovery in sales of commercial vehicles in North America in 2018. “These are blow-out numbers,” said analyst Hampus Engellau at Handelsbanken Capital Markets, which rates the stock “buy”. Shares in Volvo rose 7.0 percent by 0800 GMT, leaving the stock up 56 percent so far this year. Volvo and rivals in the truck industry such as Germany’s Daimler and Volkswagen have hit a sweet spot this year, with rising or already robust demand in all major commercial vehicles markets. The broad upturn in demand was also in evidence in Daimler’s quarterly results, also released on Friday, with a double-digit rise in deliveries and a 32 percent jump in earnings at its trucks division. Yet the buoyant demand has also come at a cost, with pressured supply chains leading components maker SAF-Holland to scale back its 2017 margin outlook this month, while Volvo’s profitability was dented in the second quarter. CONTINUOUS IMPROVEMENT Volvo said stretched components supply had continued to have an impact in the third quarter, but with a 13 percent rise in truck deliveries and sharply higher earnings in its construction equipment arm, this was shrugged off. CEO Martin Lundstedt, a former boss at rival Scania, said the bottlenecks that had mainly hit European truck manufacturing had eased somewhat in recent months, along with supplies of components for powertrains, or engines and axles. “Still there is obviously a high level of pressure in the supply chain, but if you look through the quarter and after the vacation period it has been a continuous improvement, and we continue to see that,” Lundstedt told a news conference. Volvo’s adjusted third-quarter operating profit rose to 7.02 billion Swedish crowns ($861 million) from 4.85 billion a year before, beating a mean forecast of 6.20 billion seen in a poll of analysts. ”There are really no negatives here,“ Engellau said. ”Construction Equipment is really strong and the trucks business continues to deliver in a seasonally weak quarter. “Also order intake is extremely strong and it seems demand will accelerate even further ahead.” Volvo has begun reaping the benefits of a 10 billion crown cost-cutting drive and in August set a target to reach its highest profitability since the sale of its car making arm to Ford (F.N) nearly two decades ago. Gothenburg-based Volvo said order intake of trucks at the group, which also includes brands such as Mack, Renault and UD Trucks, grew 32 percent in the quarter, beating the 15 percent rise seen by analysts. Quote Link to comment Share on other sites More sharing options...
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