“The first quarter of 2020 was impacted by the measures in society to stop the spread of the COVID-19 pandemic. These began affecting our operations in China in February and had a severe impact on the Group as of mid-March, when our global supply chain was disrupted and production halted in most parts of our operations. The reduced production and the lower demand impacted both the Group’s sales and profits negatively in Q1. Net sales decreased by 15% to SEK 91.4 billion. Our adjusted operating income amounted to SEK 7.1 billion (12.7) with a margin of 7.8% (11.8). Cash flow was negative of SEK 4.1 billion with the normal seasonal effect from higher working capital. We maintain a strong financial position with net cash of SEK 57.8 billion in the Industrial Operations, pension and lease liabilities excluded,” says Martin Lundstedt, President and CEO.
- In Q1 2020, net sales amounted to SEK 91.4 billion (107.2). Adjusted for currency movements, net sales decreased by 16%.
- Adjusted operating income amounted to SEK 7,140 M (12,696), corresponding to an adjusted operating margin of 7.8% (11.8).
- Reported operating income amounted to SEK 7,374 M (14,162).
- Currency movements had a negative impact on operating income of SEK 261 M.
- Diluted earnings per share amounted to SEK 2.30 (5.22).
- Operating cash flow in the Industrial Operations was negative in an amount of SEK 4,117 M (positive SEK 2,754 M).
- Severe impact from COVID-19 from mid-March.
- Annual General Meeting to be held on June 18, 2020.
- The Volvo Group and Daimler Truck AG intend to form joint venture for the development and large-scale production of fuel cells.
Press and Analyst Conference Call. An on-line presentation of the report, followed by a question-and-answer session will be webcast starting at 09.00 CEST. More information is available under Investors on www.volvogroup.com
SOURCE: Volvo Group
