Sweden--April 25, 2014:
During the first quarter of 2014, demand for the Volvo Group's products continued its gradual improvement in the mature economies in North America, Western Europe and Japan, while the emerging economies in South America and Asia saw weaker demand. Net sales rose by 13% to SEK 65.6 billion and operating income amounted to SEK 2.6 billion excluding restructuring costs, corresponding to a margin of 3.9%.
- In the first quarter net sales increased by 13% to SEK 65.6 billion (58.3). Adjusted for currency movements and acquired and divested units sales increased by 15%.
- The first quarter operating income amounted to SEK 2,588 M (496) excluding restructuring charges of SEK 318 M (14). Currency exchange rates had a negative impact of SEK 1,104 M.
- Operating margin in the first quarter was 3.9% (0.9) excluding restructuring charges.
- In the first quarter diluted earnings per share were SEK 0.53 (negative SEK 0.15).
- In the first quarter operating cash flow in the Industrial Operations was negative in an amount of SEK 9.0 billion (negative SEK 7.6 billion).
"The measures we are implementing to increase the Group's profitability are running according to plan and starts to have a positive impact on our gross margin and costs, but there is still more work to do in terms of cost reductions and this is the Group's main focus for 2014," says Olof Persson, President and CEO.
For an English PDF version of the report, please click here: Volvo Group Q1 2014 PDF (volvo.com/investors/finrep/interim/2014/q1/q1_2014_eng.pdf)
For a mobile version of the report please click here: Volvo Group Q1 2014 Mobile (volvo.com/investors/finrep/interim/2014/q1/eng/mobile/index.html)