VOLVO BUSES FEELS IMPACT COVID-19
Over the first quarter of this year Volvo buses has reported a decline in sales and earning. Not surprisingly has Covid-19 a big impact on the results of the Swedish bus manufacturer. Deliveries decreased by 22% from 2.019 vehicles to 1.570 and both adjusted and reported operating income amounted to SEK -129 M or 11.8 milion euros (Q1 2019: SEK 294), with an operating margin of -2.5% (+4.3) Order intake improved by 14%
Volvo Buses comments in their update that towards the end of Q1, the overall global bus market was negatively affected by Covid-19. The decline in demand has primarily affected the coach business mainly as a consequence of high deliveries in South America in 2019 and lower demand for coaches and tourist buses related to Covid-19. The transit bus market has remained on a high activity level. Volvo Buses notes that the beginning of Q2 confirms this development. In Q1, net sales decreased by 24% to SEK 5,190 M of 475.3 million euros (Q1 2019: SEK 6,847). Adjusted for currency movements, net sales decreased by 26%, whereof vehicle sales decreased by 32% and service sales increased by 3%.
Positive is that compared to Q1 2019, the net order intake increased by 14% to 2,753 units, mainly driven by South America, the Nordic region and an order for 500 transit buses to the New York State Metropolitan Transportation Authority. Another important order included 60 high-capacity electric buses to Malmö, Sweden, entering service next year.