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 our IT operations,” says Olof Persson, President and CEO.