Volvo’s third-quarter net sales fell 7% to SEK 117.0bn (Swedish Kroner), ignoring currency impacts. An 11% decline in Vehicle sales was partly offset by 4% higher Service sales.
Underlying operating profit fell more than markets expected, down 26.9% to SEK 14.1bn. This was driven by lower volumes and an unfavourable product mix which more than offset higher sales prices and easing material costs.
Free cash flow improved from an outflow of SEK 1.5bn to an inflow of SEK 5.2bn, largely due to favourable timing of payments from customers. Net debt at period-end was SEK 173.9bn.
CEO Martin Lundstedt referred to some macroeconomic “uncertainty” in the near term. He also pointed out that the industry is poised for long-term growth and Volvo is in a good position to support customers.
The shares fell 1.6% in early trading.
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