Volvo Buses claims positive fourth quarter result

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In continued weak markets Volvo Buses reported an operating income of SEK 50m for the fourth quarter 2013.

Net sales in Q4 increased by 2% to SEK 5,512m (5,385). Order intake totalled 2,406, which was a decrease of 17% compared to the same period last year. During the quarter, an order for 414 city buses to New York City was signed.

Demand remained low on the global bus market during Q4. The general economic situation in Europe keeps the market under pressure. In Asia growth is still on low levels, but the market is expected to recover in 2014. In China, the government has put policies in place to subsidise hybrid, plug-in hybrid and fully electric buses. The Indian market continues to be weak, with the coach segment being particularly low as a direct consequence of a struggling economy. The North American market continues to recover slowly.

Volvo Buses’ North American subsidiary, Nova Bus, and the Société de transport de Montréal have entered into an agreement on an electrification project for the public transit system of Montréal. In addition Nova Bus, has received an order for 414 low floor city buses, with an option for 700 additional vehicles, for MTA New York City Transit.

Volvo Buses has strengthened its hybrid program with the sales start of the Volvo 7900 Articulated Hybrid bus. It has capacity for 154 passengers and up to 30% lower fuel consumption than the current diesel model.

Deliveries in the fourth quarter amounted to 3,096 buses, compared to 2,849 units for the same period 2012, which is an increase of 9%.

Net sales increased by 2% to SEK 5,512m (5,385). Adjusted for currency fluctuations, sales increased by 7%.

Operating income amounted to SEK 50m compared to an operating loss of SEK 22m during the fourth quarter of 2012 excluding restructuring charges of SEK 110m in the fourth quarter last year.

Operating margin was a positive 0.9% compared to a negative 0.4% excluding restructuring charges in the fourth quarter of last year.