Volvo Group - the first quarter 2021

Rhea-AI Summary

In Q1 2021, Volvo Group reported a net sales increase of 3% to SEK 94.0 billion, with a significant adjusted operating income of SEK 11.8 billion and an operating margin of 12.6%. Adjusted sales, accounting for currency effects, rose by 13%. The company faced a SEK 1.1 billion impact from currency fluctuations but achieved earnings per share of SEK 4.35. Notable developments include a joint venture with Daimler for fuel cells and the completion of the UD Trucks transaction with Isuzu. However, production is hampered by semiconductor shortages.

Positive

• Net sales increased by 3% to SEK 94.0 billion.
• Adjusted operating income rose to SEK 11.8 billion, up from 7.1 billion.
• Adjusted operating margin reached a historically high 12.6%.
• Earnings per share improved to SEK 4.35 from 2.30.
• Operating cash flow in Industrial Operations was positive at SEK 5.7 billion.

Negative

• Currency fluctuations negatively impacted operating income by SEK 1.1 billion.
• Semiconductor shortages are affecting production capabilities.

GOTHENBURG, Sweden, April 22, 2021 /PRNewswire/ -- "The first quarter of 2021 was characterized by high activity among our customers, which was reflected in good demand for both new products and services. Compared with the first quarter of 2020, our net sales increased by 3% to SEK 94.0 billion. The good sales volumes, not least in the service business, and our own measures to keep costs down contributed to the adjusted operating income improving to SEK 11.8 billion (7.1). The adjusted operating margin increased to a historically high 12.6% (7.8)," says Martin Lundstedt, President and CEO.

• In Q1 2021, net sales increased by 3% to SEK 94.0 billion (91.4). Adjusted for currency movements, net sales increased by 13%.
• Adjusted operating income¹ amounted to SEK 11,821 M (7,140), corresponding to an adjusted operating margin of 12.6% (7.8).
• Reported operating income amounted to SEK 12,067 M (7,374).
• Currency movements had a negative impact on operating income of SEK 1,125 M.
• Earnings per share amounted to SEK 4.35 (2.30).
• Operating cash flow in the Industrial Operations amounted to SEK 5,665 M (-4,117).
• Volvo Group and Daimler Truck AG completed creation of fuel-cell joint venture cellcentric.
• On April 1, Volvo Group and Isuzu Motors completed the UD Trucks transaction as part of the strategic alliance.
• Shortage of semiconductors impacting production.

Press and Analyst Conference Call. An online presentation of the report, followed by a question-and-answer session, will be webcast starting at 09.00 AM CEST. More information is available under Investors on www.volvogroup.com

 April 22, 2021

Aktiebolaget Volvo (publ) 
556012-5790

Investor Relations   
SE-405 08 Göteborg, Sweden
Tel +46 31 66 00 00www.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

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 07.20 AM CEST on April 22, 2021.

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 100.000 people and serves customers in more than 190 markets. In 2020, net sales amounted to about SEK 338 billion (EUR 33.6 billion). Volvo shares are listed on Nasdaq Stockholm.

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SOURCE AB Volvo

FAQ

What were Volvo Group's net sales for Q1 2021?

Volvo Group's net sales for Q1 2021 were SEK 94.0 billion.

How did Volvo Group's adjusted operating income perform in Q1 2021?

The adjusted operating income for Q1 2021 was SEK 11.8 billion.

What was the impact of currency movements on Volvo Group's operating income?

Currency movements negatively impacted Volvo Group's operating income by SEK 1.1 billion.

What was the earnings per share for Volvo Group in Q1 2021?

Earnings per share for Volvo Group in Q1 2021 amounted to SEK 4.35.

What joint venture did Volvo Group complete in Q1 2021?

Volvo Group completed a fuel-cell joint venture with Daimler Truck AG.