Stockholm, Sweden-based Volvo Group last week reported that first-quarter net sales decreased 3 percent to SEK 61.0 billion (about U.S. $8.9 billion), from SEK 62.7 billion (U.S. $9.2 billion) a year ago.
Operating income decreased 2 percent to SEK 5.3 billion (U.S. $774.9 million) from SEK 5.4 billion (U.S. $789.5 million) for the same period in 2006. Income for the period decreased by 6 percent to SEK 3.8 billion (U.S. $555.6 million), from SEK 4.0 billion (U.S. $584.8 million). Diluted earnings per share were SEK 1.85 (U.S. $0.27) from SEK 1.96 (U.S. $0.29) a year ago.
In March 2007, Volvo’s acquisition of the Japanese truck manufacturer Nissan Diesel was completed. Nissan Diesel is consolidated in the Volvo Group’s balance sheet as of the close of the first quarter of 2007. Sales and earnings will be reported from the beginning of the second quarter.
Volvo Group’s acquisition of Ingersoll Rand’s road development division was completed in the second quarter. Intensive efforts are underway to create a new division for road construction equipment within Volvo Construction Equipment, the company said.
In related company news, Volvo reported last week that as a result of Nissan Diesel’s current president, Iwao Nakamura, retiring at mid-year 2007, Volvo Group last week announced that Satoru Takeuchi will replace him as a member of the group’s executive committee. Takeuchi will also succeed Nakamura as president of Nissan Diesel.
Takeuchi is currently senior managing director within Nissan Diesel and has worked within the company since 1969.
Nakamura has been president of Nissan Diesel since 2002.
