Volvo Buses – improved earnings in a slowly recovering market

The global bus market is slowly recovering from historically low levels. In Europe the total market has been slightly up during the first four months of the year. The Asian markets show growth, but from low levels. In South America, the development of the Brazilian city bus market remains weak, while the coach segment is gradually recovering. There is a clear trend towards electro mobility, with large interest in hybrid technologies for public transport in South America. In North America, the trend for the coach and transit market is somewhat positive.
Volvo Buses delivered 2,194 buses during the second quarter 2014, compared to 2,050 units in the second quarter of 2013, an increase of 7%. Deliveries in South America increased by 20%. European deliveries were up by 33%, while Asia decreased by 35%. Order intake in the second quarter totaled 2,403 buses, which was 3% higher than last year.

Net sales in the second quarter increased by 19% to SEK 4,775 M (4,008). Adjusted for currency fluctuations, sales increased by 18%. Buses reported an operating income of SEK 70 M (11) excluding restructuring charges of SEK 6 M (0).

The operating margin excluding restructuring charges was 1.5% (0.3). The earnings increase is an effect of an improved aftermarket business and higher volumes, which were partially offset by production disturbances and negative product mix. Compared to the second quarter of 2013, operating income was positively impacted by currency exchange rates in an amount of SEK 30 M.