Catastrophic 3rd quarter results from Volvo group
Friday, 25 October 2013
Truck maker Volvo group reports operating profit was Skr2.398 million for the third quarter of 2013.
Analysts had expected an operating profit of Skr3.315 million,
according to consensuses. Operating margin came to 3.7 percent for the
quarter when it was expected 4.9 percent.
Sales amounted to Skr64.9 billion for the period when expectation from analysts’ consensus forecast stood at Skr68 million.
- In the third quarter, net sales decreased by 5percent to Skr 64.9
billion compared to Skr 68.3 billion in the third quarter of 2012.
Adjusted for currency movements and acquired and divested units net
sales increased by 3percent.
- The third quarter operating income amounted to Skr 2,502 M
(3,480) excluding restructuring charges of Skr 104 M (560). Compared
with the third quarter of 2012, changes in currency exchange rates had
a negative impact of Skr 1,068 M.
- Operating margin in the third quarter was 3.9percent (5.1) excluding restructuring charges.
- In the third quarter, earnings per share were SKR 0.68 (0.69).
- n the third quarter, operating cash flow in the Industrial Operations was negative in an amount of Skr 5.3 billion (neg. 7.2).
- As part of the previously announced Group-wide efficiency
program, a directional decision has been made to rationalize white
collars in staff and support functions by approximately 2,000 employees
and consultants. This rationalization comprises a large part of the
announced Skr 5 billion of restructuring costs.
During the third quarter, the Volvo Group’s net sales decreased by 5
percent to Skr 64.9 billion. Operating income amounted to Skr 2,502 M
excluding restructuring charges of Skr 104 M.
Operating income was negatively impacted by changes in currency
exchange rates as well as costs related to the launch of new trucks,
changeovers to the new trucks in the industrial system and parallel
production of new and old generations of trucks. Operating margin in
the third quarter was 3.9 percent excluding restructuring charges.
“The Volvo Group’s third quarter was characterized by the ongoing
comprehensive product renewal in the Group’s truck program and the fact
that we entered a new phase of the Group’s development focused on
taking actions to streamline and enhance the efficiency of our
operations. The product renewal is the largest in the history of the
Volvo Group, and it means that we are going to enter 2014 with a highly
competitive product range.” Olof Persson, President and CEO writes in
teh press release.
Details from Volvo
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