Volvo Group Reports Q3

Author:
Publish date:
1_VolvoPenta_A2019_7425

Volvo Group reported net sales of 76.9 billion Swedish Krona in the third quarter, about $8.8 billion, a drop of about 16 percent when adjusted for currency fluctuations.

Adjusted operating income was around $822 million, corresponding to an adjusted operating margin of 9.4 percent.

Volvo Penta had a strong performance with an adjusted operating margin of 18.6 percent, up from 12.7 percent. In terms of dollars, that amounts to 570 million Swedish Krona, about $65 million.

2_VolvoPenta_A2017_6788

“The boating season in the Northern Hemisphere had a positive impact on the service business,” said Volvo Group president and CEO Martin Lundstedt in a statement.

The market for larger yachts showed a solid recovery from Q2, Volvo said but the charter market — continuing to struggle with ongoing travel restrictions and lockdowns — negatively impacted sales of sailing yachts and catamarans.

However, net sales increased by 3 percent and service sales were up by 11 percent. Net order intake saw a 3 percent increase as well (8,138 units), and deliveries, at 8,840 units, was down 2 percent.

The profitability of our customer-financing operations in Volvo Financial Services was negatively impacted by increased provisioning for expected credit losses, Lundstedt said.

The adjusted operating income amounted to SEK 423 million, around $48.2 million, down from SEK 774 million a year prior, around $88.2 million.

“The increased transport and construction activity benefits our customers’ financial situation,” he said.

The company continues to invest in solutions that are electrified, automated and connected. In Europe, Volvo started selling battery-electric trucks in March and are now moving ahead also in North America. 

Related

Great Lakes Dealer Rebrands

Now known as Trawlers Great Lakes, the former Bay Breeze Yacht Sales has been a Nordic Tugs dealer since 2002.

Registration for Outdoors Conference Opens

The Outdoor Recreation Roundtable’s June 1-2 virtual conference will include speakers and presenters from government agencies and ORR member partners.

Yamaha Sees Double-Digit Growth in Q1

The marine segment was up 7.4 percent, driven by demand for outboards in North America and Europe but tempered by supply-chain logistics.

Orion Announces SafetyPro Training

The factory-authorized courses are designed “to educate retail associates on how to match a boater’s type of boating with the different signal kits that we offer.”

A Truce on Tariffs?

The E.U. will suspend the June 1 increase of its retaliatory tariffs and agreed to negotiate with the U.S. to end steel and aluminum tariffs.

Argos 3D Forward Looking Sonar

For 20 Years, FarSounder has been developing and manufacturing 3D forward-looking sonar for vessels of all sizes.

Dometic Marine Appoints Executives

The company promotes a 20-plus-year employee and adds a vice president of aftermarket sales and e-commerce.

IMEA Launches Scholarship Program

The International Marine Electronics Alliance aims to recruit students into the field of marine technology.

RBFF Campaign Reels in Awards

The fishing-and-boating advocacy group’s Get on Board campaign was recognized by two national public relations organizations.