"We are talking record sales, record results and record margins," said the Group CEO, Olof Persson at a press conference on Friday.
Olof Persson writes in a statement:
"The net turnover increased to 310 billion kronor (265), operating profits improved to 26.9 billion kronor (18.0), and the operating margin was 8.7 percent (6.8). At the same time, the return on operative capital in industrial activity increased to 28.8 percent and the return on shareholders' equity increased to 23.1 percent."
But there are some concerns for the future, warns Olof Persson.
One of the problems is that the Group's order intake for trucks dropped by 7 percent during the fourth quarter of 2011 compared to the year before. In Europe the order intake dropped by 24 percent, but in North America it increased by 22 percent.
"We are now entering a market with lower activity in Europe with a lower production level. The production capacity is in line with demand," says Olof Persson.
The Chinese market is expected to remain on the same level during 2012. Earlier Volvo CE expected a growth of up to 10 percent. According to Olof Persson, the changed prognosis is due to an expected downturn during the first six months. The second half of 2012 is however expected to bring increased activity.
The Volvo Group launched a re-organisation programme last autumn. The main focus so far has been the new recruitments of managers and creating new management groups. However, in the long-term, it could also mean staff cutbacks.
"The main idea with the re-organisation is to grow. But if we find we are doing things inefficiently, we have to take measures against it," says Olof Persson.
