VOLVO – 1st quarter results above estimates

It’s done

Volvo Q1 2024 results in detail:

• Actual truck orders received of 48,701 trucks (-19% YoY) and 55.5k units shipped, -10% YoY

• Net sales of SEK 131.2 billion, stable year-on-year, +1% above FactSet consensus.
o Trucks at SEK 89.9 billion, +0% yoy and +2% above consensus.
or Construction Eq. at SEK 22.9, -9% YoY and -4.9% below consensus.
o Buses for SEK 5.2 billion, +21% year-on-year and +8% above the agreement.
o Cash at SEK 5.2 billion and +17% above the agreement.

• adj. operating profit at SEK 18.2 billion/13.8% margin (-2%/-0.3 percentage points yoy), +6%/+0.6 percentage points above consensus.
o Positive impact on prices and costs, offset by negative rates
o Trucks at SEK 13.1 billion/14.6% margin, +3% yoy/+0.8 pp yoy and +0.8 pp above consensus.
or Construction Eq. with SEK 3.7 billion/16.2% margin, -20%/+2 percentage points yoy and +1.4 percentage points above consensus.
o Buses at SEK 259 million/5.0% margin, +45%/+0.9 percentage points yoy and +0.5 percentage points above consensus.
o Cash at SEK 1.0 billion, +16% yoy, +12% above consensus.

• Industrial operations. CF at SEK 8.9 billion, compared to SEK 5 billion a year ago
HD Truck Market Outlook 2024:

• 280,000 trucks certified in EU (including UK), -18% yoy

• NA 290,000 trucks, -12% YoY confirmed

• Brazil 95,000, +10% year-over-year, compared to previous guidance 90,000, +6%

• China (M&HD) 800,000, +12% YoY, confirmed

• India (M&HD) 390,000, +11% yoy vs. previous forecast of 425,000, -8%

The effect

Volvo reported 1Q24 results above guidance. Sales were almost stable year-on-year, with buses growing by +21%, but…