Volvo Buses income declines in first quarter

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Volvo Buses’ operating income has declined in the first quarter of 2012 although net sales increased by 10%.

The decline to SEK 62 M is attributable to pricing pressure in Europe and low capacity utilisation in the manufacturing system in Europe and Brazil.

The 10% net sales increase to SEK 5,224 M was driven by significantly higher deliveries in Brazil in connection to the new, stricter emission regulation. Adjusted for currency fluctuations, net sales increased by 7%.

The company believes the global bus market is recovering in varying degrees, with volumes lower in Europe compared to 2011. It claims the number of registrations in southern Europe has declined significantly.

Deliveries during the first quarter of 2012 amounted to 2,800 buses, compared with 2,533 in the year-earlier period, up 11%. South America also accounts for the largest increase in this quarter.

One of the reasons for the upturn is higher deliveries of the front-engine buses which were introduced in 2011. The order intake for the first quarter amounted to 2,256 buses, compared with 2,369 in the yearearlier period, down 5%.

During the first quarter, 184 hybrid orders were signed in the UK, of which the largest order to date is 77 double-decker buses for Arriva in London.