Volvo Group Q2 Profit Increases

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(RTTNews.com) - Volvo Group (VOLVY.PK) reported that its net income attributable to equity holders of the parent company for the second-quarter increased to 9.22 billion Swedish kronor from last year's 5.81 billion kronor, with earnings per share improving to 4.53 kronor from 2.86 kronor in the prior year.

Adjusted operating income amounted to 11.52 billion kronor compared to 8.40 billion kronor last year. Adjusted operating income in the latest-quarter excluded a capital gain of 818 million kronor. The higher adjusted operating income was primarily an effect of higher truck and construction equipment volumes, higher service sales, higher capacity utilization and increased capitalization of R&D expenses. This was partly offset by higher selling and administrative expenses, higher R&D expenses as well as costs related to a stretched situation in parts of the supply chain.

Net sales for the quarter increased by 18% to 103.6 billion kronor from 87.9 billion kronor last year. Adjusted for currency movements and acquired and divested units sales increased by 16%. Vehicle sales increased by 18% adjusted for currency movements, primarily driven by higher volumes of trucks and construction equipment. All regions contributed to the sales growth. Adjusted for currency movements, service sales increased by 8%, reflecting a growing installed population and higher utilization of customer fleets.

Truck deliveries increased by 14% to 59,571 vehicles in the second-quarter of 2018, while net order intake in the quarter increased by 10% to 60,656 trucks.

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This article appears in: Fundamental Analysis , World Markets , Stocks , Economy , Earnings

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