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Volvo Group – Report on Operations 2009

Posted by Dana in February 8th 2010

In the fourth quarter, the Volvo Group (STO:VOLVA)(STO:VOLVB) continued to have substantial costs in connection with its effort to adjust the cost structure to a considerably lower level of demand in the wake of the financial crisis, something that contributed to an operating loss of slightly more than SEK 2 billion in the quarter. The main focus during the quarter was on cash flow and the Group created a positive cash flow of SEK 8.6 billion, which is one of the best cash inflows ever for a single quarter.

• In the fourth quarter net sales decreased by 23% to SEK 59.8 billion (78.0). For the full year net sales decreased by 28% to SEK 218.4 billion (304.6)

• The fourth quarter operating loss amounted to SEK 2,316 M (Loss SEK 999 M) including restructuring and layoff-related costs, residual value write-downs and inventory write-downs of in total SEK 1.4 billion. The full year operating loss amounted to SEK 17.0 billion (Income SEK 15.9 billion)

• In the fourth quarter basic and diluted earnings per share amounted to a negative SEK 0.99 (Negative SEK 0.67). Full-year earnings per share amounted to a negative SEK 7.26 (Positive SEK 4.90)

• In the fourth quarter, operating cash flow in the Industrial Operations was positive in an amount of SEK 8.6 billion (1.8). Cash flow was positively impacted by SEK 5.6 billion from a reduction of inventories

• During the quarter, net debt in the Industrial Operations was reduced by SEK 8.9 billion

• The Board of Directors proposes that no dividend is distributed for the year 2009 (SEK 2.00 per share)