Volvo Group - the third quarter 2022

Rhea-AI Summary

In Q3 2022, the Volvo Group reported net sales growth of 35% to SEK 114.9 billion, boosted by vehicle and service sales. Adjusted operating income rose to SEK 11.9 billion, with an operating margin of 10.3%. A reduction in working capital led to strong operating cash flow of SEK 14.6 billion. The return on capital employed improved to 27.4% and the earnings per share reached SEK 4.24. Production of heavy-duty electric trucks commenced, enhancing the company's position in sustainable transport.

Positive

• Net sales increased 35% to SEK 114.9 billion.
• Adjusted operating income rose to SEK 11.9 billion, reflecting strong profitability.
• Operating cash flow improved significantly to SEK 14.6 billion.
• Return on capital employed increased to 27.4%; a positive indicator of efficiency.
• Series production of heavy-duty 44-tonne electric trucks began, demonstrating innovation.

Negative

• Adjusted operating margin decreased to 10.3% from 11.0% year-over-year.
• Currency fluctuations positively impacted operating income significantly by SEK 2.4 billion, indicating vulnerability to exchange rates.

GOTHENBURG,Sweden, Oct. 20, 2022 /PRNewswire/ -- "In Q3 2022, the Volvo Group's strong growth continued. We increased our net sales by 35% to SEK 114.9 billion with a good development both in the sales of vehicles and in the service business. The adjusted operating income rose to SEK 11.9 billion (9.4) with an adjusted operating margin of 10.3% (11.0). A reduction in working capital contributed to a strong operating cash flow of SEK 14.6 billion (-5.7) in Industrial Operations. Return on capital employed improved to 27.4% (25.6)," says Martin Lundstedt, President and CEO.       

• In Q3 2022, net sales increased by 35% to SEK 114.9 billion (85.3). Adjusted for currency movements the increase was 21%.
• Both adjusted and reported operating income amounted to SEK 11,869 M (9,403), corresponding to an operating margin of 10.3% (11.0).
• Currency movements had a positive impact on operating income of SEK 2,417 M.
• Earnings per share amounted to SEK 4.24 (3.47).
• Operating cash flow in Industrial Operations amounted to SEK 14,611 M (-5,735).
• Return on capital employed in Industrial Operations amounted to 27.4% (25.6).
• Series production of heavy-duty, 44-tonne electric trucks started.

Press and Analyst Conference Call. An on-line presentation of the report, followed by a question and answer session will be webcast starting at 09.00 CET.

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 CEST on October 20, 2022.

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.

The following files are available for download:

https://mb.cision.com/Main/39/3651565/1641043.pdf	volvo-group-report-q3-2022-en
https://news.cision.com/ab-volvo/i/q3report2022-1860x1050,c3103458	Q3Report2022 1860x1050
https://mb.cision.com/Public/39/3651565/bb01266de56554b9.pdf	221020-volvo-group-q3-pressrelease-en

View original content:https://www.prnewswire.com/news-releases/volvo-group--the-third-quarter-2022-301654755.html

SOURCE AB Volvo

FAQ

What were Volvo Group's Q3 2022 net sales?

In Q3 2022, Volvo Group reported net sales of SEK 114.9 billion, a 35% increase compared to the previous year.

How much did Volvo Group's operating income rise in Q3 2022?

Volvo Group's adjusted operating income rose to SEK 11.9 billion in Q3 2022.

What was Volvo Group's earnings per share in Q3 2022?

The earnings per share for Volvo Group in Q3 2022 amounted to SEK 4.24.

Did Volvo Group's operating cash flow improve in Q3 2022?

Yes, operating cash flow in Industrial Operations improved significantly to SEK 14.6 billion in Q3 2022.

What impact did currency fluctuations have on Volvo Group's Q3 2022 results?

Currency movements positively impacted Volvo Group's operating income by SEK 2.4 billion in Q3 2022.