Volvo Group – Report on the second quarter 2012

 | Source: Volvo, AB Volvo, AB 

The Volvo Group’s sales continued to grow during the second quarter. Net sales
rose 6% to SEK 83.9 billion – representing the highest sales so far for a second
quarter. Operating income totaled SEK 7.3 billion, which includes a positive
impact of SEK 495 M as a result of VAT credits in Brazil. The operating margin
of 8.7% is slightly lower than the year-earlier quarter, due primarily to a
change in market mix.

  · In the second quarter, net sales increased by 6% to SEK 83.9 billion (79.0)
which is the highest sales so far for a second quarter. Adjusted for currency
movements and acquired and divested units, sales increased by 1%.

  · The second quarter operating income amounted to SEK 7,335 M (7,648),
including a positive impact of SEK 495 M from VAT credits in Brazil relating to
previous years. Compared to the second quarter of 2011, changes in exchange
rates had a positive impact of SEK 513 M.

  · Operating margin in the second quarter was 8.7% (9.7).

  · In the second quarter, basic and diluted earnings per share amounted to SEK
2.40 (2.52).

  · In the second quarter, operating cash flow in the Industrial Operations was
positive in an amount of SEK 2.5 billion (positive SEK 5.2 billion).

  · AB Volvo acquires shares in engine manufacturer Deutz AG and increases
ownership to 25%.

  · AB Volvo divests Volvo Aero to British GKN for SEK 6.9 billion.


“After the first quarter, we have taken two strategically important steps. One
of these was the sale of Volvo Aero. The transaction will free up capital that
can be utilized to expand our core operations, notably in growth markets such as
Asia. The other step was that we signed an agreement to increase our
shareholding in the German engine manufacturer, Deutz, from 6.7% to slightly
more than 25%. For many years, Deutz has been our strategic partner on medium
-duty engines for construction equipment, a segment in which they are
specialists,” Olof Persson, President and CEO.


For an English PDF version of the report, please click here: Volvo Group Q2 2012
PDF (http://www3.volvo.com/investors/finrep/interim/2012/q2/q2_2012_eng.pdf)

For an English web version of the report please click here: Volvo Group Q2 2012
HTML (http://www3.volvo.com/investors/finrep/interim/2012/q2/eng/index.html)

For a mobile version of the report please click here: Volvo Group Q2 2012 Mobile
 (http://www3.volvo.com/investors/finrep/interim/2012/q2/eng/mobile/index.html)
 (http://www3.volvo.com/investors/finrep/interim/2012/q2/eng/mobile/index.html)

Aktiebolaget Volvo  Contacts Investor Relations:
(publ) 556012-5790  Christer Johansson          +46 31 66 13 34
Investor            Patrik Stenberg                 +46 31 66 13 36
Relations, VHQ      Anders Christensson       +46 31 66 11 91
SE-405 08           John Hartwell                    +1 212 418 7432
Göteborg, Sweden
Tel +46 31 66 00
00
www.volvogroup.com

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