Volvo Group – the fourth quarter and full year 2020 “In 2020, the global pandemic presented us with challenges that are unprecedented in modern times. Together with business partners and suppliers, we supported our customers through all stages of the crisis. We handled dramatic fluctuations in demand while taking decisive steps forward towards tomorrow’s fossil-free transport system.
We demonstrated that we have significantly improved our volume and cost flexibility, which were crucial factors behind our earnings resilience in 2020. Despite a loss of almost SEK 100 billion in revenues, we were able to deliver an adjusted operating income of SEK 28.6 billion with a margin of 8.4%. I would like to thank all my colleagues and our business partners for their fantastic efforts in very difficult circumstances,” says Martin Lundstedt, President and CEO.
THE FOURTH QUARTER 2020
In Q4 2020, net sales amounted to SEK 96.9 billion (105.4). Adjusted for currency movements, net sales increased by 1%. Adjusted operating income amounted to SEK 10,934 M (9,223), corresponding to an adjusted operating margin of 11.3% (8.8). Reported operating income amounted to SEK 12,215 M (9,379). Currency movements had a negative impact on operating income of SEK 1,770 M. Diluted earnings per share amounted to SEK 4.53 (3.27). Operating cash flow in the Industrial Operations amounted to SEK 16,668 M (19,856).
Final agreements signed with Isuzu Motors and Daimler Truck AG. The supply chain is strained in many areas and there will be production disturbances and increased costs at least in Q1 2021.
THE FULL YEAR 2020
Full year net sales were SEK 338.4 billion (432.0). Adjusted operating income amounted to SEK 28,564 M (47,910) corresponding to an adjusted operating margin of 8.4% (11.1). Reported operating income amounted to SEK 27,484 M (49,531). Diluted earnings per share were SEK 9.50 (17.64). Operating cash flow in the Industrial Operations amounted to SEK 18,545 M (38,309).
The Board of Directors proposes an ordinary dividend of SEK 6.00 per share (0) and an extra dividend of SEK 9.00 per share (0).
Press and analyst conference call. An online presentation of the report, followed by a questionand-answer session will be webcast starting at 09.00 AM CET. More information is available on the Volvo Group Investor page.
