Financial impact on Volvo Group due to the war in Ukraine
Volvo Group has suspended all operations in Russia due to the war in Ukraine, affecting approximately SEK 9 billion in total assets. Out of this, SEK 6 billion comprises cash assets that could be recouped over time. The company anticipates a SEK 4 billion negative impact on operating income for Q1 2022, primarily within Financial Services. In 2021, Russia accounted for about 3% of the Group's net sales. The firm expresses sympathy for those affected by the conflict.
- Total assets related to Russia are approximately SEK 9 billion, with SEK 6 billion in cash items that could be materialized over the coming years.
- Suspension of operations in Russia impacting operating income by approximately SEK 4 billion in Q1 2022.
- 3% of net sales in 2021 were attributable to Russia, indicating a loss of revenue stream.
GOTHENBURG, Sweden, April 8, 2022 /PRNewswire/ -- Since the war in Ukraine started and sanctions were imposed, all sales, service and production in Russia have been suspended. The Volvo Group has total assets of approximately SEK 9 billion related to Russia, of which approximately SEK 6 billion is cash items that could be materialized over the coming years. In the first quarter 2022, assets amounting to approximately SEK 4 billion will be provided for and have a negative impact on operating income, primarily in the Financial Services segment.
In 2021, approximately
The Volvo Group expresses its deepest sympathy with all the people suffering due to the devastating war in Ukraine and is committed to supporting affected employees, families and communities.
April 8, 2022
Journalists wanting further information, please contact:
Claes Eliasson, Volvo Group Media Relations, +46 76 553 72 29
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 7.30 a.m. CEST on April 8, 2022.
For more information, please visit volvogroup.com
For frequent updates, follow us on Twitter: @volvogroup
The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs almost 95.000 people and serves customers in more than 190 markets. In 2021, net sales amounted to about SEK 372 billion (EUR 37 billion). Volvo shares are listed on Nasdaq Stockholm.
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SOURCE AB Volvo
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