“In Q3, utilization of trucks and machines gradually improved as COVID-19 restrictions were eased. Towards the end of the quarter transport activity was back on roughly the same level as a year ago in most markets. This led to an improved sentiment among our customers, which is reflected in increased order intake for trucks, engines and construction equipment as well as a gradually improving service business. In the last two quarters, our organization and business partners have shown great volume flexibility by first handling a dramatic volume decline and then a steep recovery with good productivity maintained. However, the weak order intake in the previous quarter impacted the Group’s net sales in Q3, which amounted to SEK 76.9 billion – 16% lower than a year ago adjusted for currency. Our service business is more stable, with currency-adjusted revenues coming down by only 1% compared to Q3 last year and with a sequential improvement. Despite the sales decline we achieved an adjusted operating margin of 9.4% (11.0) thanks to significant cost reductions,” says Martin Lundstedt, President and CEO.
In Q3 2020, net sales amounted to SEK 76.9 billion (98.7). Adjusted for currency movements, net sales decreased by 16%.
- Adjusted operating income amounted to SEK 7,217 M (10,885), corresponding to an adjusted operating margin of 9.4% (11.0).
- Reported operating income amounted to SEK 7,508 M (10,885).
- Currency movements had a negative impact on operating income of SEK 1,499 M.
- Diluted earnings per share amounted to SEK 2.81 (3.67).
- Operating cash flow in the Industrial Operations was positive in an amount of SEK 11,712 M (1,831).
SOURCE: Volvo Group