7/19/2016, 8:41 AM (Source: TeleTrader)
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Volvo's second quarter sales drop 7%

Volvo Car Corp. reported 7% lower sales in the second quarter at 78.89 billion Swedish krona (€8.32 billion; $9.21 billion). Operating income was almost halved to 3.79 billion krona (€8.32 billion; $9.21 billion), from 7.31 billion krona in the second quarter a year ago. Net income was 3.45 billion krona (€363 million, $402 million) or 0.97 krona per share (€0.110, $0.11), compared to 6.36 billion krona or 2.53 krona per share in the comparable quarter of 2015.

The Göteborg, Sweden-based vehicle manufacturer delivered 8% less trucks in the three months ending on June 30, mainly due to lower demand in both North and South America. There was also a fall of 12% in number of construction equipment units delivered.

"Despite [decrease in sales of 7%], the underlying operating income increased to SEK 6.1 billion, corresponding to an operating margin of 7.8%," said Martin Lundstedt, president and chief executive officer. He added that sales of electric and hybrid buses increased (by 11%) in key markets, and the company is trying to keep the buyers through customer financing system, which happens to be notably profitable.

Volvo AB shares last closed at 88.35 krona on Monday, rising 9.14% so far this year.

Breaking the News / ZR