Volvo Group - the third quarter 2021

Rhea-AI Summary

The Volvo Group reported Q3 2021 net sales of SEK 85.3 billion, an 11% increase from the previous year, driven by strong service demand. The adjusted operating income rose to SEK 9.4 billion, marking an operating margin of 11.0%. Despite these positive results, production faced disruptions due to shortages of semiconductors and other components, leading to increased costs. The earnings per share climbed to SEK 3.47, up from 2.81. However, operating cash flow turned negative at SEK -5.7 billion.

Positive

• Net sales increased by 11% to SEK 85.3 billion.
• Adjusted operating income rose to SEK 9.4 billion, corresponding to a margin of 11.0%.
• Earnings per share improved to SEK 3.47.

Negative

• Production disturbances due to semiconductor and component shortages.
• Increased costs affecting profitability.
• Operating cash flow decreased to SEK -5.7 billion.

GOTHENBURG, Sweden, Oct. 21, 2021 /PRNewswire/ -- "During Q3 2021, demand for the Volvo Group's products and services was good in most markets around the world. We increased our net sales to SEK 85.3 billion with strong growth not least in the service business. However, the quarter was affected by shortages of semiconductors, other components and freight capacity resulting in production disturbances and increased costs. Despite this, we delivered an adjusted operating income of SEK 9.4 billion, which corresponds to a margin of 11.0%," says Martin Lundstedt, President and CEO.

• In Q3 2021, net sales increased by 11% to SEK 85.3 billion (76.9). Adjusted for currency movements and the divestment of UD Trucks, net sales increased by 20%.
• Adjusted operating income amounted to SEK 9,403 M (7,217), corresponding to an adjusted operating margin of 11.0% (9.4).
• Reported operating income amounted to SEK 9,403 M (7,508).
• Currency movements had a positive impact on operating income of SEK 126 M.
• Earnings per share amounted to SEK 3.47 (2.81).
• Operating cash flow in the Industrial Operations amounted to SEK -5,735 M (11,712).
• Return on capital employed in the Industrial Operations amounted to 25.6% (13.2).

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

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

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 October 21, 2021.October 21, 2021For 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.

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

https://news.cision.com/ab-volvo/r/volvo-group---the-third-quarter-2021,c3437265

The following files are available for download:

https://mb.cision.com/Main/39/3437265/1484030.pdf	volvo-group-q3-report-2021-eng
https://news.cision.com/ab-volvo/i/image-q3-2021,c2970503	image-q3-2021
https://mb.cision.com/Public/39/3437265/afbd31b5957e3b56.pdf	211021-volvo-group-q3-pressrelease-eng

View original content:https://www.prnewswire.com/news-releases/volvo-group--the-third-quarter-2021-301405398.html

SOURCE AB Volvo

FAQ

What were Volvo Group's Q3 2021 net sales?

Volvo Group reported net sales of SEK 85.3 billion for Q3 2021.

How did Volvo Group's operating income perform in Q3 2021?

The adjusted operating income was SEK 9.4 billion, with an operating margin of 11.0%.

What were the earnings per share for Volvo Group in Q3 2021?

The earnings per share for Q3 2021 amounted to SEK 3.47.

Did Volvo Group face any production challenges in Q3 2021?

Yes, production was affected by shortages of semiconductors and other components.

What was the operating cash flow for Volvo Group in Q3 2021?

The operating cash flow in Q3 2021 was SEK -5.7 billion.