SWEDEN: AB Volvo says it will consider ‘possible acquisitions’
AB Volvo has said it takes a 'positive view' of opportunites to increase the return of funds to shareholders at its next next annual general meeting, but said it wants to consider 'possible acquisitions' before taking a definitive position.
The importance of a strong credit rating will also be considered.
The statement follows the acquisition of a 6% stake in Volvo by venture capital company Cevian and its statement that it will fight for higher dividends from the Swedish truck and bus manufacturer.
Volvo said it has also revised its financial targets and is raising its medium term ('business cycle') operating margin target to 7% from 5-7%, and also raising its restricting ratio for net debt to equity to 40% of shareholders' equity from 30%.
The company retained its sales target for annual growth of 'more than 10%'.