New products pressure Volvo profits
Extra costs associated with a flurry of new products ‘put pressure’ on Volvo Group’s profitability in 2013, according to its President and CEO, Olof Persson. In its third quarter results, the Group’s operating income for 2013 was £672.1m/SEK7,138m (2012: £1,701.3m/SEK18,069m). Its income after taxes was £357.7m/SEK3,802m (2012: £1,070.6m/SEK11,378m). The Board of Directors proposes a dividend of £0.28/SEK3.00 per share.
Volvo Buses’ net sales went down 15% to £1,571m/SEK16,707m (2012: £1,843.2m/SEK19,587m). However, the fourth quarter of the year saw a better performance, with net sales of £518.8m/SEK5,512m (2012: £506.8m/SEK5,384m), up 2%. It delivered 8,910 units in the 12 months, down 4% (2012: 9,297 units). Deliveries in the fourth quarter of 2013 were up 9% to 3,096 units (2012: 2,849 units). A global cost reduction programme is in effect at Volvo Buses to offset negative market developments and to compensate for currency effects.