Volvo Q3 Profit Flat; Creates New Business Area For Autonomous Transport
(RTTNews) - Volvo Group (VOLVY.PK) reported that its net income attributable to owners of the company for the third-quarter was 7.455 billion Swedish kronor or 3.67 kronor per share compared to 7.459 billion Swedish kronor or 3.67 kronor per share in the prior year.
".... demand for new vehicles is declining and we are facing a period of tougher market conditions," said Martin Lundstedt, President and CEO.
Separately, Volvo said it will create the new business area, Volvo Autonomous Solutions, to accelerate the development, commercialization and sales of autonomous transport solutions.
The autonomous transport solutions will constitute a new business area as of January 1, 2020. Its financial results will be reported as part of the Truck segment. The recruitment process for the position as Head of Volvo Autonomous Solutions has commenced, the company said in a statement.
Autonomous transport solutions, based on self-driving and connectivity technologies are well-suited for applications where there is a need to move large volumes of goods and material on pre-defined routes, in repetitive flows, the company said.
Volvo's net income for the third quarter rose to 7.55 billion kronor, from 7.52 billion kronor in the previous year.
Operating income for the quarter grew to 10.89 billion kronor from the prior year's 10.25 billion kronor, mainly due to an effect of improved prices and lower product costs, which were partly offset by higher R&D expenses, negative mix and higher selling expenses.
Quarterly net sales increased 7% to 98.72 billion kronor from 92.28 billion kronor last year. Adjusted for currency movements, net sales increased by 2%.
Vehicle sales increased by 2% adjusted for currency movements, primarily driven by higher bus deliveries. Adjusted for currency movements, service sales increased by 1%.
Total truck net order intake in third-quarter decreased by 45% to 35,726 trucks while deliveries decreased by 1% to 52,357 vehicles.