Martin Lundstedt, Volvo president and CEO comments: “In the third quarter, profitability improved slightly as better underlying performance offset the impact from lower volumes. Sales decreased by 6% to SEK 69 billion. The adjusted operating income amounted to SEK 4.8 billion, corresponding to an operating margin of 7.0% due to a positive cost development and a strong European truck market.
Volvo CE operates in a market with continued low demand. Deliveries are the same as last year’s third quarter but sales are down 3%. Operating margin improved slightly to 5.2% despite flat volumes and an un-favorable product mix. On the positive side orders increased slightly across all regions but from low levels in the BRIC regions. We see no immediate increase of demand and continue the internal work to focus on Volvo CE’s strongholds. During the quarter Volvo CE displayed a range of innovations such as a hybrid wheel loader with the potential to improve fuel efficiency by up to 50% and autonomous wheel loader and hauler prototypes.
During the quarter Volvo’s fully autonomous truck was the first in the world to be tested in operations deep underground in the Kristineberg Mine in Sweden. The self-driving truck is part of a development project aimed at improving the transport flow and safety in the mine.