Volvo Group reported its newest monetary outcomes on Wednesday and highlighted slower gross sales in Europe as a result of a declining demand for vans.
The automotive big stated in its newest fourth quarter and full 12 months 2024 earnings report that internet gross sales got here as much as SEK 526.8 billion (€45.98bn) for the total 12 months 2024, which was a fall from the SEK 552.3bn (€48.20bn) seen in 2023. This was primarily as a result of faltering truck demand in Europe.
Adjusted working revenue for full 12 months 2024 dropped to SEK 65.7bn (€5.73bn), down from SEK 78.2bn (€6.82bn) in 2023.
For the fourth quarter, internet gross sales dropped 6% to SEK 138.4bn (€12.08bn), down from SEK 148bn (€12.91bn) within the fourth quarter of 2023. Adjusted working revenue in This autumn 2024 got here as much as SEK 14.0bn (€1.22bn), down from SEK 18.5bn (€1.61bn) within the corresponding interval the earlier 12 months.
Volvo Group skilled slower development and freight exercise in a number of key markets, following these sectors stabilising after just a few years of strong progress. Ongoing inflation and geopolitical uncertainty contributed to the corporate’s dampened outcomes as properly.
Martin Lundstedt, the president and chief govt officer (CEO) of Volvo Group, stated within the fourth quarter and full 12 months earnings report on the corporate’s web site: “2024 was a 12 months with substantial product launches throughout the Volvo Group and with a excessive tempo in R&D spend, particularly in This autumn.
“We’ll proceed our push to innovate, however anticipate gross R&D in 2025 to stability out barely above the extent of 2024. We additionally continued to streamline our portfolio to strengthen our core enterprise and entered new partnerships and collaborations to proceed to drive the transformation in the direction of extra environment friendly and carbon-neutral options.”
The corporate additionally introduced an bizarre dividend of SEK 8.00 (€0.70) per share and an additional dividend of SEK 10.50 (€0.92) per share.
Volvo Automobiles takes full possession of NOVO Vitality AB
Volvo Automobiles additionally stated on Wednesday that it will be shopping for Northvolt AB’s share of their three way partnership NOVO Vitality AB, thus buying full possession of the latter. NOVO Vitality AB was established to construct an electrical automobile (EV) battery manufacturing facility in Gothenburg, Sweden.
In October, Volvo Automobiles revealed that it will be needing a brand new companion to make sure that plans for this manufacturing facility go forward as scheduled.
Value particulars for the sale of the stake haven’t been revealed but, with the deal nonetheless topic to approval by related authorities.
Northvolt AB has been attempting to promote most of its non-core companies and joint ventures, in an effort to deal with its ongoing monetary woes. Nonetheless, it has signed a framework with Volvo Automobiles to take a look at attainable collaboration alternatives in North America down the road.