Volvo’s CEO Martin Lundstedt. Photo: Anders Ahlgren
The clock struck 09:00. Volvo CEO Martin Lundstedt pressed into a snus brand Göteborgs rapé lower lip, got up on stage in Tändstickspalatset in Stockholm and delivered a statement of expectations – despite a lot of dark clouds.
the sales for Sweden’s biggest companies decreased in the second quarter by 7 percent to 78.9 billion, while the margin on the operating profit increased from 7 1 to 7.8 percent. And now it recruited.
– Europe has done well in the truck. In September we recruits in Tuve in Göteborg. It moves about half a night shift and between 400 and 500 new employees. It feels great, says Martin Lundstedt in an individual interview with Svenska Dagbladet.
It is clearly the largest profit center, trucks are , which accounts for two thirds of sales. Overall, the truck operating profit margin to 10 percent. The main reason is that the large savings program of SEK 10 billion that expired since 2012 begin to take effect. Trucks’ order intake decreased by 8 percent, and it sold 9 percent fewer vehicles than the second quarter last year since the North American truck market slowed. You went on staff last winter. But it is not enough and now Martin Lundstedt cut more in the US, where there are Mack and Volvo brand.
– For Volvo, it is unfortunately 300 people on short contracts may leave. In all likelihood, it will also be a number of Mack.
Martin Lundstedt recruited from Scania in October last year. When the sketch was essentially two challenges up: how could he raise the profit margin in it that evil called a sprawling global conglomerate without synergies – and thereby appease the great owner, Christer Gardell and the increasingly impatient chairman Carl-Henric Svanberg.
second challenge was to clean up the bushy flora of operations, as before former CEO Leif Johansson bought on itself. Mainly mentioned Construction Equipment and Volvo Penta (marine engines). Many thought the fact that he would do that for Scania: focus on trucks.
But now that margins climbed up, they have loud voices for quick sales toned down. Martin Lundstedt is still open with him looking over Volvo’s variegated activities.
Are you going to keep the Construction Equipment and Volvo Penta?
– We are clear that we looking over the various business areas, product lines and geographies to ensure that we have a long term profitable business. But we do not comment on specific areas.
Volvo sorrow children are CE. They are the Group’s second largest region, accounting for nearly one-fifth of sales. Orders decreased in the second quarter by 17 percent and deliveries went down by 16 percent. Above all printed operating margin down from 8.8 percent to 5.9.
– I’m still pleased with the work of CE given the tough markets.
On Tuesday came is also expected, but somewhat bizarre, the announcement from the European Commission that AB Volvo have fined a record € 6.4 billion for the cartel for 14 years until 2011. it has, together with Daimler, DAF, MAN and Volvo / Renault rigged prices and pushed up demand for new emission control technology. Scania is still under investigation.
By June deposed Volvo 2.3 billion in the accounts (set up as a special item in the quarterly results) and had a total of dedicating 6.1 billion.
But the big question is who is responsible to the shareholders just lost 6.4 billion remains curiously unanswered.
PG Gyllenhammar, Volvo’s president between 1970 and 1983 and president until 1993, was recently published in Dagens Industri, with the message that “… it ruined Volvo since I left” – but does not allude to a record fine.
Do you share Gyllenhammars assessment?
– PG and other have made great impressions. We are the largest companies. We dig where we stand and run full speed ahead.
Martin Lundstedt invited recently in PG Gyllenhammar call.
– Respect for history is also important for to win in the future.
was it a nice meeting?
– of course it was a nice meeting.
Volvo second quarter
Revenue: 78 890 SEK
Operating profit (excluding extraordinary items): 6130 SEK
Net income: 1991 SEK
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