VOLVO AB UNSP/ADR - VLVLY STOCK NEWS

Volvo Group reported significant challenges due to the global pandemic in 2020, facing a revenue loss of nearly SEK 100 billion. Despite this, the company achieved an adjusted operating income of SEK 28.6 billion with an 8.4% margin. In Q4 2020, net sales declined to SEK 96.9 billion, but adjusted operating income rose to SEK 10,934 million, marking an 11.3% margin. The Board proposed a dividend of SEK 15.00 per share. However, production disturbances and increased costs are anticipated in Q1 2021 due to a strained supply chain.

Volvo Trucks North America has been awarded $21.7 million in grants for deploying 70 VNR Electric trucks in Southern California, funded by the EPA and the South Coast Air Quality Management District. The deployment aims to improve air quality and will start in 2021, concluding in 2023. This initiative is part of the Volvo LIGHTS project, targeting zero-emission freight transport. The trucks are expected to reduce emissions by over 152.63 tons of NOx and 53,160 tons of CO2 over their lifetime, promoting sustainability in the trucking industry.

Volvo Group reported Q3 2020 net sales of SEK 76.9 billion, a 16% decline compared to last year, primarily due to weaker order intake in the preceding quarter. Adjusted operating income was SEK 7,217 million with a margin of 9.4%. The company noted a strong positive shift in transport activity and customer sentiment, leading to increased orders for trucks and construction equipment. Despite the sales drop, operating cash flow was notably positive at SEK 11,712 million, indicating operational resilience amidst the pandemic.

Volvo Environment Prize awarded Claire Kremen for her research on balancing biodiversity and agriculture. Her work highlights that over 60-70% of Earth's surface is used for farming, often harming wildlife. Kremen emphasizes the need for diversified landscapes to support ecosystems and food production, noting a 68% decline in wildlife populations since 1970, per WWF. She advocates for agroecological practices that enhance productivity while preserving biodiversity. The award ceremony is set for November 12, with a prize of SEK 1.5 million.

The Volvo Group will release its third-quarter 2020 report on October 20, 2020, at 7.20 a.m. CEST. A conference call for press and analysts will start at 9.00 a.m. CEST, featuring President and CEO Martin Lundstedt and CFO Jan Ytterberg. An online presentation will follow, including a Q&A session. Media inquiries can be arranged from 10.15 a.m. CEST. In 2019, the Volvo Group reported net sales of approximately SEK 432 billion (EUR 40.5 billion), serving customers across over 190 markets.

Volvo Penta has unveiled an electric driveline for its latest fire truck in collaboration with Rosenbauer, named the Revolutionary Technology (RT). The truck, featuring cutting-edge drive technology, was officially launched in Austria and will undergo real-world testing in Berlin, Amsterdam, and Dubai. With a total output of up to 360 kW (490 HP) and innovative design focused on safety and functionality, the RT aims to revolutionize the fire service industry by offering zero exhaust emissions and lower noise levels. Volvo's modular electric driveline solution showcases their commitment to sustainable transport solutions.

Volvo Group's subsidiary Mack Trucks has delivered the first Mack LR Electric refuse vehicle to the New York City Department of Sanitation (DSNY) for real-world testing. This fully electric vehicle aims to help DSNY meet its greenhouse gas (GHG) emissions goals. The LR Electric features an integrated electric powertrain with two 167-kW motors, delivering a combined 536 peak horsepower. DSNY's trial will evaluate its performance across local collection routes. Mack plans to commercialize the LR Electric model in 2021, enhancing environmentally-friendly refuse collection.

Volvo Buses has partnered with Stena Recycling's Batteryloop to extend the life of bus batteries, repurposing them as energy storage units for buildings and charging stations after their use in buses. This initiative not only conserves natural resources but also promotes sustainability through a circular business model. The collaboration encompasses all batteries used in Volvo's electric buses globally, responding to increasing demand for electric public transport and energy storage solutions. The partnership aims to transform previously incurred costs into revenue streams for customers.