In the first quarter, profitability was maintained by the Volvo Group thanks to a lower cost base and focus on adapting to changes in demand. This was despite slightly lower revenues. Sales amounted to SEK 71.7 billion, a decline of 4%, half of which was due to currency effects. Operating income totaled SEK 5.3 billion, representing an operating margin of 7.5%.
- In Q1 2016 net sales decreased by 4% to SEK 71.7 billion (74.8). Adjusted for currency movements and acquired and divested units sales decreased by 2%.
- Operating income amounted to SEK 5,344 M compared with SEK 7,066 M, excluding restructuring charges of SEK 229 M in Q1 2015.
- Operating income in Q1 2016 includes a capital gain of SEK 885 M from the sale of the external IT operation while operating income in Q1 2015 included a capital gain of SEK 2,471 M from the sale of shares in Eicher Motors Limited.
- Adjusted for capital gains and restructuring charges (in 2015), operating income amounted to SEK 4,459 M (4,595), corresponding to an operating margin of 6.2% (6.1).
- Currency movements had a negative impact of SEK 417 M on operating income.
- Operating cash flow in the Industrial Operations was negative in an amount of SEK 10.4 billion (-1.7).