Volvo Group - the first quarter 2022

Rhea-AI Summary

The Volvo Group reported strong financial results for Q1 2022, with net sales rising by 12% to SEK 105.3 billion. Service growth surged by 19%, driven by increased business activity and a growing service contract portfolio. Adjusted operating income increased to SEK 12.7 billion, though the operating margin decreased slightly to 12.0%. Reported operating income was impacted by a SEK 4.1 billion provision related to Russia. Despite these challenges, the return on capital employed improved to 25.3%.

Positive

• Net sales increased by 12% to SEK 105.3 billion due to high transport volumes.
• Service growth rose by 19%, reflecting strong demand.
• Adjusted operating income improved to SEK 12.7 billion.

Negative

• Reported operating income decreased due to a SEK 4.1 billion negative effect from provisions related to Russia.
• Earnings per share fell to SEK 3.46 from SEK 4.35.

GÖTEBORG, Sweden, April 22, 2022 /PRNewswire/ -- "Economic activity continued to be good in Q1 2022 with high transport volumes and good construction activity in most markets. We increased sales and improved profitability. Our net sales grew by 12% to SEK 105.3 billion. The high business activity combined with our growing service contract portfolio resulted in continued good service growth, which was up by 19%. Adjusted operating income increased to SEK 12.7 billion (11.8) and we achieved an adjusted operating margin of 12.0% (12.6) despite a challenging supply chain situation," says Martin Lundstedt, President and CEO.

• In Q1 2022, net sales increased by 12% to SEK 105.3 billion (94.0). Adjusted for currency movements and the divestment of UD Trucks, the increase was 11%.
• Adjusted operating income amounted to SEK 12,681 M (11,821), corresponding to an adjusted operating margin of 12.0% (12.6).
• Reported operating income amounted to SEK 8,556 M (12,067), including a negative effect from provisioning of assets related to Russia in an amount of SEK 4,125 M.
• Currency movements had a positive impact on operating income of SEK 1,267 M.
• Earnings per share amounted to SEK 3.46 (4.35).
• Operating cash flow in the Industrial Operations amounted to SEK -5,400 M (5,665).
• Return on capital employed in Industrial Operations of 25.3% (17.1).

Press and Analyst Conference Call. An on-line presentation of the report, followed by a question and answer session will be webcast starting at 9.00 a.m. CEST.

More information, including an interview with CEO Martin Lundstedt, is available on https://www.volvogroup.com/en/investors.html

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 7.20 a.m. CEST on April 22, 2022.

Aktiebolaget Volvo (publ) 556012-5790
Investor Relations  
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00  
www.volvogroup.com        

Contact Media Relations:
Claes Eliasson +46 765 53 72 29

Contacts Investor Relations:
Christer Johansson +46 739 02 25 22
Johan Bartler +46 739 02 21 93
Anders Christensson +46 765 53 59 66

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 SEK 372 billion (EUR 37 billion). Volvo shares are listed on Nasdaq Stockholm.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/ab-volvo/r/volvo-group---the-first-quarter-2022,c3550745

The following files are available for download:

https://mb.cision.com/Main/39/3550745/1567362.pdf	volvo-q1-2022-eng
https://mb.cision.com/Public/39/3550745/92ccc27f402d871f.pdf	220422-ab-volvo-the-first-quarter-2022-en
https://news.cision.com/ab-volvo/i/volvo-fh,c3040390	volvo-fh

 

 

 

 

View original content:https://www.prnewswire.com/news-releases/volvo-group--the-first-quarter-2022-301530788.html

SOURCE AB Volvo

FAQ

What were Volvo Group's Q1 2022 net sales?

Volvo Group's net sales for Q1 2022 were SEK 105.3 billion, a 12% increase.

How much did Volvo Group's adjusted operating income increase in Q1 2022?

Volvo Group's adjusted operating income increased to SEK 12.7 billion in Q1 2022.

What was the impact of currency movements on Volvo's operating income in Q1 2022?

Currency movements positively impacted Volvo's operating income by SEK 1.3 billion.

How did the Q1 2022 earnings per share compare to Q1 2021 for Volvo Group?

Earnings per share for Q1 2022 were SEK 3.46, down from SEK 4.35 in Q1 2021.

What was the return on capital employed for Volvo's Industrial Operations in Q1 2022?

The return on capital employed for Volvo's Industrial Operations was 25.3% in Q1 2022.