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.
“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.