Volvo Group reported net sales of 96.9 billion Swedish krona in the fourth quarter, about $11.5 billion, a decrease of 8 percent compared with SEK105.5 billion ($12.5 billion) in the same quarter a year prior (adjusted for currency fluctuations).
For 2020, the company reported net sales of $40.1 billion (SEK338.4 billion), a loss of 21 percent compared with $51.3 billion (SEK432 billion) compared with 2019. Adjusted operating income of $3.4 billion (SEK28.6 billion) reflected a margin of 8.4 percent.
CEO Martin Lundstedt said Volvo Group had “dramatic fluctuations in demand” due to the Covid-19 pandemic.
“The past year has really highlighted the need to be able to deliver both here and now, and at the same time transform and build for the future,” Lundstedt said in a statement. “I am proud of what we have achieved and also of the drive in the organization to constantly make things better.”
Volvo Penta had a strong fourth quarter, as the marine segment continued to rebound from Covid-19 related challenges in the first two quarters of 2020. Orders increased by 22 percent to 11,716 units, and deliveries were up 4 percent to 9,538 units.
Net sales showed a decrease of 2 percent to $344 million (SEK2.9 billion). Adjusted for currency movements, net sales increased 3 percent in the engine business and 13 percent in related services.
For the full year, Volvo Penta reported a sales decrease of 11 percent to $1.4 billion (SEK 11.9 billion).
Following Volvo Group, Volvo Penta reprioritized investments in electrification and other transformational technologies, which included the closure of high-horsepower-outboard manufacturer Seven Marine.