Volvo Group – the fourth quarter 2013
The fourth quarter for the Volvo Group was characterized by a high activity level, with a number of product launches. We have entered into 2014 with a new product portfolio that will strengthen the Group’s competitiveness. During 2013, extra costs associated with the product renewal put pressure on the Group’s profitability, and this was also the case in the fourth quarter.
In the fourth quarter, the Group’s net sales rose 8% year-on-year, and amounted to SEK 76.6 billion with an operating margin of 4.0% adjusted for restructuring charges and the write-down of Volvo Rents. The seasonally good operating cash flow of SEK 10.3 billion in our Industrial Operations contributed to the strengthening of our financial position.
“The year we have left behind us was characterized by extensive product launches, which involved a lot of hard work in all parts of the Group and an elevated cost level. Although we still have a couple of quarters ahead of us before we are completely through the Group’s largest product renewal ever, this year will be characterized by efficiency improvements, including a reduction in activities and costs, as well as personnel reductions. This will play an important part in the work to achieve the Group’s strategic and financial targets,” says Olof Persson, President and CEO.
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