Volvo Group reports record first quarter
Volvo Group has announced its first-quarter fiscal results for 2023, revealing record gains.
The Sweden-based manufacturing giant — parent company of Volvo Penta — reports a 25 per cent year-over-year increase in revenue, and a higher adjusted operating income. Net sales rose from SEK105.3b in Q1 2022 to SEK131.4b (US$12.8b) in Q1 2023 — the company’s most significant quarter to date, representing a gain of 17 per cent when adjustment for currency fluctuations.
Volvo Penta has seen a 33 per cent increase in net sales, worth SEK5.6b (US$4.2b). The company has seen sales of engines increase 31 per cent, while sales and services increased 11 per cent. Of the 12,727 engine units delivered during Q1 2023, 20 were fully electric. This is a 233 per cent increase on the same quarter last year.
In a statement, Volvo Group’s chief executive Martin Lundstedt says these positive results are linked to a generally strong demand in the marine and industrial segment.
The statement reveals earnings have also been impacted positively by a favourable brand and product mix, and price realisation, which were partly offset by lower volumes and increased material costs and R&D expenses. Compared with Q1 2022, currency movements had a positive impact of SEK589m.
“Together with our business partners, we continue to work hard to meet our customers’ needs while at the same time having a high degree of flexibility to quickly adapt to any changes in demand,” says Lundstedt. “We are operating from a position of strength and will continue to take advantage of growth opportunities in our efforts to move to fossil free transport and infrastructure solutions – to the benefit of our customers and our shareholders as well as society at large.”
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