The Volvo Group announced its financial results for the third quarter of 2024, reporting a 7% decrease in net sales when adjusted for currency effects, amounting to SEK 117.0 billion, down from SEK 132.3 billion in Q3 2023. The drop reflects a normalization in demand across most of the company’s markets, with freight and construction activities cooling down compared to last year’s elevated levels.
Vehicle sales saw an 11% year-on-year decline, while sales of services displayed resilience, growing by 4% during the quarter. Despite the lower sales volumes, the company achieved solid profitability, with an adjusted operating income of SEK 14.1 billion, compared to SEK 19.3 billion in Q3 2023. The adjusted operating margin stood at 12.0%, down from 14.4% last year.
Martin Lundstedt, President and CEO of the Volvo Group, emphasized the continued profitability in a challenging market environment, stating, “We continued to generate good profits on the lower sales volumes thanks to hard work by our colleagues and business partners.”
Currency fluctuations had a significant impact on the results, with negative effects amounting to SEK 1,561 million, in contrast to a positive impact of SEK 1,165 million in the previous year. Reported operating income for Q3 2024 amounted to SEK 14.1 billion, with an operating margin of 12.0%, compared to SEK 18.5 billion and a margin of 13.8% in Q3 2023. Earnings per share for the quarter were SEK 4.93, down from SEK 6.93 in the same period last year.
Operating cash flow in the Industrial Operations segment reached SEK 3,069 million, compared to SEK 5,609 million in Q3 2023, reflecting the broader market adjustments. Despite the softer demand, the return on capital employed in Industrial Operations improved to 38.3%, up from 33.7% last year, demonstrating the company’s focus on maintaining efficiency and profitability.
As the global markets adjust to more normalized demand levels, the Volvo Group remains committed to navigating the evolving landscape while continuing to deliver value to its stakeholders.
