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Volvo Group Q1 Adj. Operating Income Declines; Adj. Net Sales Down 16%

Volvo Group (VOLVY.PK) reported that it first quarter income to owners declined year-on-year to 4.67 billion Swedish kronor from 10.61 billion kronor. Earnings per share was 2.30 kronor compared to 5.22 kronor. Reported operating income was 7.37 billion kronor compared to 14.16 billion kronor. Adjusted operating income declined to 7.1 billion kronor from 12.7 billion kronor.

First quarter net sales decreased by 15% to 91.4 billion Swedish kronor. Adjusted for currency movements, net sales decreased by 16%. Vehicle sales decreased by 21% adjusted for currency movements, for the quarter.

The Group noted that the reduced production and the lower demand impacted both the sales and profits negatively in its first quarter.

"The first quarter of 2020 was impacted by the measures in society to stop the spread of the COVID-19 pandemic. These began affecting our operations in China in February and had a severe impact on the Group as of mid-March, when our global supply chain was disrupted and production halted in most parts of our operations," said Martin Lundstedt, President and CEO.

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