Net sales for Volvo Group decreased 3% in 2016 to SEK301,914m/£27,414.99m (2015: SEK312,515m/£28,377.6m), according to its latest financial results. The company put the decrease down to the lower demand for vehicles in North America. Group operating income fell too, reaching SEK20,826m/£1,891.08m (2015: SEK23,318m/£2,117.37m). Deliveries of Volvo buses increased 8% to 9,553 units (2015: 8,825 units) valued at SEK25,386m/£2,305.15m (2015: SEK23,580m/£2,141.16m), also up 8%. Figures for Volvo buses in the fourth quarter of 2016 were not as good though with deliveries falling to 2,787 in the period (Q4 2015: 2,970).
Volvo Group CEO, Martin Lundstedt, said, ‘2016 was a year with somewhat lower volumes. Our revenues declined by 3% to SEK302bn/£27.39bn. Nonetheless, our profitability improved with an adjusted operating margin of 7% for the full year 2016. This reflects our ability to manage volume changes in different regions as well as continued cost reductions and productivity improvements. In 2017, we will focus on leveraging the new brand based organisation in trucks that is now fully operational. We will also continue the process of decentralisation and empowerment to be able to even better serve our customers.’