“In the second quarter, we were able to continue the improvement of our underlying profitability despite declining sales, thanks to positive cost development. Sales decreased by 7% to SEK 78.9 billion. Despite this, the underlying operating income increased to SEK 6.1 billion, corresponding to an operating margin of 7.8%,” says Martin Lundstedt, President and CEO.
- In Q2 2016, net sales decreased by 7% to SEK 78.9 billion (84.8). Adjusted for currency movements and acquired and divested units sales decreased by 3%.
- Operating income in Q2 2016 amounted to SEK 6,130 M (5,979), corresponding to an operating margin of 7.8% (7.1), excluding a provision of SEK 2,334 M related to the EU competition investigation in Q2 2016 and restructuring charges of SEK 799 M and a capital gain of SEK 2,137 M from the sale of shares in Eicher Motors Limited in Q2 2015.
- Currency movements had a negative impact on operating income of SEK 317 M.
- Operating cash flow in the Industrial Operations was positive in an amount of SEK 6.9 billion (8.6).