Volvo Group president and CEO Martin Lundstedt said the group had a record year in 2018.

“For the full year, we grew net sales by 17% to SEK 391 billion (333) and improved our adjusted operating income to SEK 40.7 billion (29.3), with a margin of 10.4% (8.8). Trucks, construction equipment, Volvo Penta and financial services all recorded their highest adjusted operating income ever.”

Lundstedt said that during the year they also continued to increase their financial strength.

“With an operating cash flow of SEK 26.6 billion we ended the year with a net cash position of SEK 43.9 billion in the industrial operations, excluding pension liabilities. This enables us to take on the future from a position of strength,” he said.

The fourth quarter 2018

• In Q4, net sales increased by 16% to SEK 105.8 bn (91.6). Adjusted for currency movements and acquired and divested units net sales increased by 10%.
• Adjusted operating income amounted to SEK 10,597 M (7,105), corresponding to an adjusted operating margin of 10.0% (7.8). Adjusted operating income in Q4 2018 excludes the previously announced provision of SEK 7 bn.
• Reported operating income amounted to SEK 3,597 M (7,105).
• Currency movements had a positive impact on operating income of SEK 1,225 M.
• Operating cash flow in the industrial operations amounted to SEK 15.5 bn (14.4).

Full year 2018

• For the full year 2018 net sales increased by 17% to SEK 390.8 bn (332.7).
• Adjusted operating income amounted to SEK 40,660 M (29,278) corresponding to an operating margin of 10.4% (8.8).
• Reported operating income amounted to SEK 34,478 M (29,678).
• Operating cash flow in the industrial operations amounted to SEK 26.6 bn (28.4).
• The board of directors proposes an ordinary dividend of SEK 5.00 per share (4.25) and an extra dividend of SEK 5.00 per share.