Stockholm, Sweden-based Volvo Group last week announced that in the third quarter of 2010, its sales increased by 32 percent to SEK 64 billion (about U.S. $9.63 billion).
Profitability continued to improve as a consequence of higher sales volumes, strict control over costs, and increased capacity utilization and a favorable productivity trend in the industrial systems. Operating income rose to SEK 4.9 billion (U.S. $737.2 million) and the Group reached an operating margin of 7.7 percent. The operating income as well as the operating margin is the highest to date for a third quarter, the company said.
“At present, we are raising the production rates in most of our manufacturing facilities, and we are working intensely to ensure that the production increase is carried out as efficiently as possible with a minimum of tied-up capital,” said Leif Johansson, president and CEO. “We are also focusing on securing that all of the activities that have been implemented to further boost productivity and efficiency across the Group shall continue to have a positive impact on our profitability.”
The third-quarter operating income amounted to SEK 4.91 billion (U.S. $738.7 million) compared with a loss of SEK 3.29 billion (U.S. $495.0 million) in the year-ago period. Operating margin in the third quarter was 7.7 percent compared with negative 6.8 percent in 3Q09.
In the third quarter, basic and diluted earnings per share amounted to SEK 1.38 (U.S. $0.20) compared with negative SEK 1.44 (U.S. $0.21) in the third quarter of 2009.
Half of the Group’s net sales were generated in markets outside Western Europe and North America, the company said.
The Volvo Group a leading supplier of commercial transport solutions providing products such as trucks, buses, construction equipment, engines and drive systems for boats and industrial applications as well as aircraft engine components.
