Volvo Group - the fourth quarter and full year 2020
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.
- Adjusted operating income for Q4 2020 increased to SEK 10,934 million, up from SEK 9,223 million.
- Diluted earnings per share for Q4 2020 rose to SEK 4.53 from SEK 3.27.
- The Board proposes an ordinary dividend of SEK 6.00 and an extra dividend of SEK 9.00 per share.
- Full year net sales dropped to SEK 338.4 billion from SEK 432.0 billion.
- Adjusted operating income for the full year declined to SEK 28.6 billion from SEK 47.9 billion.
- Operating cash flow in Industrial Operations decreased to SEK 18.5 billion from SEK 38.3 billion.
- Currency movements negatively impacted operating income by SEK 1,770 million.
- Production disturbances and increased costs are expected in Q1 2021 due to supply chain strains.
GÖTEBORG, Sweden, Feb. 3, 2021 /PRNewswire/ -- "In 2020, the global pandemic presented us with challenges that are unprecedented in modern times. Together with business partners and suppliers, we supported our customers through all stages of the crisis. We handled dramatic fluctuations in demand while taking decisive steps forward towards tomorrow's fossil-free transport system. We demonstrated that we have significantly improved our volume and cost flexibility, which were crucial factors behind our earnings resilience in 2020. Despite a loss of almost SEK 100 billion in revenues, we were able to deliver an adjusted operating income of SEK 28.6 billion with a margin of
THE FOURTH QUARTER 2020
- In Q4 2020, net sales amounted to SEK 96.9 billion (105.4). Adjusted for currency movements, net sales increased by
1% . - Adjusted operating income amounted to SEK 10,934 M (9,223), corresponding to an adjusted operating margin of
11.3% (8.8). - Reported operating income amounted to SEK 12,215 M (9,379).
- Currency movements had a negative impact on operating income of SEK 1,770 M.
- Diluted earnings per share amounted to SEK 4.53 (3.27).
- Operating cash flow in the Industrial Operations amounted to SEK 16,668 M (19,856).
- Final agreements signed with Isuzu Motors and Daimler Truck AG.
- The supply chain is strained in many areas and there will be production disturbances and increased costs at least in Q1 2021.
THE FULL YEAR 2020
- Full year net sales were SEK 338.4 billion (432.0).
- Adjusted operating income amounted to SEK 28,564 M (47,910) corresponding to an adjusted operating margin of
8.4% (11.1). - Reported operating income amounted to SEK 27,484 M (49,531).
- Diluted earnings per share were SEK 9.50 (17.64).
- Operating cash flow in the Industrial Operations amounted to SEK 18,545 M (38,309).
- The Board of Directors proposes an ordinary dividend of SEK 6.00 per share (0) and an extra dividend of SEK 9.00 per share (0).
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 CET. More information is available on the Volvo Group Investor page.
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 CET on February 3, 2021.
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
February 3, 2021
For more information, please visit volvogroup.com
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 2019, net sales amounted to about SEK 432 billion (EUR 40.5 billion). Volvo shares are listed on Nasdaq Stockholm.
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SOURCE AB Volvo
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