Volvo Group has released its fourth quarter and full year 2015 results. It was a year of largely unchanged volumes, with the exception of construction equipment, where demand declined considerably. Profitability improved with the operating margin excluding restructuring charges going from 3.0% in 2014 to 8.2% in 2015. This was thanks to cost reductions, but was also helped by positive currency development and capital gains from selling shares.
THE FOURTH QUARTER 2015
- In the fourth quarter net sales increased by 3% to SEK 79.6 billion (77.5). Adjusted for currency movements, and acquired and divested units sales decreased by 1%.
- Operating income amounted to SEK 5,382 M (-1,429) excluding restructuring charges of SEK 871 M (830). Currency movements had a positive impact of SEK 1,201 M.
- Operating income includes a positive impact from an arbitration case of SEK 809 M. The fourth quarter of 2014 was negatively impacted by provisions of SEK 3,790 M relating to the EU antitrust case and SEK 660 M for credit losses in China. Adjusted for these three items operating income excluding restructuring charges amounted to SEK 4,573 M (3,021) corresponding to an operating margin of 5.7% (3.9).
- Operating cash flow in the Industrial Operations amounted to SEK 14.7 billion (10.6).
THE FULL YEAR 2015
- For the full year 2015 net sales increased by 10% to SEK 312.5 billion (282.9).
- Operating income amounted to SEK 25,652 M (8,393) excluding restructuring charges of SEK 2,333 M (2,569).
- The operating margin excluding restructuring charges amounted to 8.2% (3.0).
- Operating cash flow in the Industrial Operations amounted to SEK 18.3 billion (6.4).
- The Board of Directors proposes a dividend of SEK 3.00 per share (3.00)
