Volvo Group has announced its fourth quarter and full year 2016 financial results.
“2016 was a year with somewhat lower volumes. Our revenues declined by 3% to SEK 302 bn. Nonetheless, our profitability improved with an adjusted operating margin of 7.0% for the full year 2016. This reflects our ability to manage volume changes in different regions as well as continued cost reductions and productivity improvements. The fourth quarter followed the pattern of previous quarters with somewhat improved profitability on lower volumes. Adjusted operating income was SEK 5,660 M, corresponding to a margin of 6.9%,” says Martin Lundstedt, President and CEO.
THE FOURTH QUARTER 2016
- In Q4 2016 net sales increased by 4% to SEK 82.6 bn (79.6). Adjusted for currency movements and acquired and divested units sales decreased by 1%.
- Adjusted operating income in Q4 2016 amounted to SEK 5,660 M (4,573), corresponding to an operating margin of 6.9% (5.7), excluding a capital gain on the sale of real estate of SEK 1,371 M.
- Currency movements had a positive impact on operating income of SEK 336 M.
- Operating cash flow in the Industrial Operations amounted to SEK 4.8 bn (14.7). Adjusted for the EU antitrust investigation and the sale of real estate, operating cash flow was SEK 8.7 bn.
THE FULL YEAR 2016
- For the full year 2016 net sales decreased by 3% to SEK 301.9 bn (312.5).
- Adjusted operating income amounted to SEK 21,094 M (20,235) corresponding to an operating margin of 7.0% (6.5).
- Operating cash flow in the Industrial Operations amounted to SEK 3.5 bn (18.3).
- The Board of Directors proposes a dividend of SEK 3.25 per share (3.00).