During the first quarter of 2010, the Volvo Group’s sales amounted to SEK 58.6 billion (about U.S. $8.1 billion), compared with SEK $56.1 billion (U.S. $7.8 billion) in the same period a year ago, which adjusted for currency was a 12-percent increase. Operating income improved considerably to SEK 2.8 billion (U.S. $388.5 million), compared with a loss of SEK 4.5 billion (U.S. $624.3 million) in the same quarter in the preceding year. All of the group’s business segments were profitable. The operating margin rose to 4.8 percent as a consequence of the actions taken to reduce the group’s costs and as an effect of improved capacity utilization and productivity in the industrial system.
“With a gradually improved global economy, demand is once again increasing for the group’s products,” said Leif Johansson, president and CEO. “At the same time, the measures we have implemented to cut costs have generated good results throughout the group. Looking ahead, we will focus on utilizing the rising sales volume to increase productivity in all of the group’s operations while maintaining a strict focus on cost. Sales and administration costs will be kept down and we are resolute about further enhancing the efficiency in product development.”