In the fourth quarter of 2012, Volvo Group’s net sales declined to SEK71.8bn (US$11.32bn) from SEK86.5m in the corresponding period of the previous year, as a result of lower economic activity in many of its markets and a continued uncertainty about the future direction that made its customers more cautious. However, overall the company has maintained its market positions with some regional variations. Operating income dropped by 83.9% to SEK1.12bn, compared to SEK6.96bn in 2011. Fourth quarter basic and diluted earnings per share stood at SEK0.39.
For the full year 2012, the Volvo Group’s net sales amounted to SEK303.6bn compared to SEK310.4bn a year earlier, with an operating income of SEK17.6bn compared to SEK26.9bn in the previous year.
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“On a group level the first quarter of 2013 will also be difficult as a result of the low order intake in many markets during the fourth quarter of 2012. Profitability will be affected by low capacity utilisation, high spend levels in research and development and costs associated with the launch of new products. However, we expect market conditions to gradually improve during the course of 2013 when economic growth across the world gains momentum.” Olof Persson, president and CEO.
