The Volvo Group’s first quarter of 2013 was characterized by low sales volumes and low capacity utilization, even as the truck builder continued to maintain a high pace in developing and launching new products.
Net sales for the first quarter declined 25 percent to SEK (Swedish krona) 58.3 billion, primarily as a result of the weak order intake in late 2012. The sales volumes were the lowest since the financial crisis and were on the level of the first quarter of 2009. Then, the Volvo Group reported a loss of SEK 4.5 billion, compared with a profit of SEK 0.5 billion for the first quarter this year.
“Despite uncertainty in the global economy, order intake has improved and we have many new, competitive products on their way to the market,” said Olof Persson, president and CEO for the Volvo Group. “That being said, the second quarter of 2013 will pose a challenge for us and our suppliers, with respect to the changeover to new products and the ramp-up of the industrial system to higher volumes. At the same time, we are focusing on our strategy with all the important measures aimed at improving the overall profitability for the Volvo Group.”
In the first quarter, net sales decreased by 25 percent to SEK 58.3 billion (77.8). Adjusted for currency movements and acquired and divested units, net sales decreased by 17 percent.
- The first quarter operating income amounted to SEK 482 M (6,240).
- Operating margin in the first quarter was 0.8 percent (8.0).
- In the first quarter, diluted earnings per share were a negative SEK 0.15 (positive SEK 1.99).
- In the first quarter, operating cash flow in the Industrial Operations was negative in an amount of SEK 7.6 billion (negative SEK 4.9 billion).
- Truck order intake increased by 30 percent compared to the fourth quarter of 2012.