Volvo Group has announced its second quarter results at its global HQ in Sweden revealing that the result has been boosted by the sale of UD to Isuzu, while supply chain and semi-conductor shortages caused substantial production shortages during the quarter.
Those shortages have disrupted the company’s production around the globe, and T&B News understands that the company’s subsidiary here in Australia has close to 300 trucks sitting at grass awaiting critical components, a factor that has delayed the start of regular production of its new truck range which was released earlier this year.
The company revealed it recorded net sales of $AUD of 14.18 billion (SEK 90.6billion) with operating profit of $AUD1.51 billion (SEK9.7billion).
Volvo Group’s global CEO and president, Martin Lundstedt said the shortages resulted in substantial production stoppages, negatively affecting both volumes and costs.
“This meant we achieved an adjusted operating margin of 10.7 per cent,” said Lundstedt.
The company said that its net sales increased by 24 per cent up from $AUD11.2 billion (SEK 73.2 billion) which when adjusted for currency movements and the divestment of UD Trucks, increased net sales by 43 per cent.
Volvo finalised the sale of UD to Isuzu on the 1st April and said that certain items of interest were presented excluding UD Trucks, to facilitate the “comparability of the Group’s financial performance between the periods”.
Volvo said that adjusted operating income of $AUD1.51 billion (SEK 9,7 billion) up from $AUD500million (SEK 3.27billion), corresponding to an adjusted operating margin of 10.7 per cent up from a threadbare 4.5 per cent in the previous quarter.
The company reported that currency movements had a negative impact of $AUD230million(SEK 1.5 billion) but still reported an operating income amounting to $AUD1.76billion (SEK 11.3 billion).
Volvo stated that the proceeds from the $AUD 3.1 billion (SEK 19 billion) sale of UD Trucks were distributed to the shareholders in July.
Volvo Group has of course signed a non-binding agreement with both Daimler Truck and the Traton Group to install and operate a high-performance public charging network across Europe as part of the Group’s push to zero emission vehicles.