Volvo Group – the second quarter 2016
“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%,” 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).
Press and Analyst Conference. An on-line presentation of the report, followed by a question-and-answer session will be webcast starting at 9.00 CEST. More information under Interim reports on www.volvogroup.com
Aktiebolaget Volvo (publ) 556012-5790 Contacts Investor Relations:
Investor Relations, VHQ Christer Johansson +46 31 66 13 34
SE-405 08 Göteborg, Sweden Anders Christensson +46 31 66 11 91
Tel +46 31 66 00 00 Anna Sikström +46 31 66 13 36
For more stories from the Volvo Group, please visit http://www.volvogroup.com/globalnews.
The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 18 countries and sells its products in more than 190 markets. In 2015 the Volvo Group’s sales amounted to about SEK 313 billion (EUR 33,4 billion). The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on Nasdaq Stockholm. For more information, please visit www.volvogroup.com or www.volvogroup.mobi if you are using your mobile phone.
This information is information that AB Volvo (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7.20 a.m. CEST on July 19, 2016.