Volvo Aero reports increased sales and profitability

Volvo Aero reported that net sales during the second quarter increased by 26% to SEK 1,945m (1,547m in 2011). Adjusted for currency fluctuations, net sales during the second quarter increased by 13%. Operating income amounted to SEK 305m compared to SEK 62m in the same quarter of 2011. The improvement is a result of a positive trend with higher productivity, fewer disturbances in the production facilities, and a favourable product mix. Earnings were also positively impacted by a stronger US dollar. Compared with the second quarter of 2011, operating income was positively impacted by changes in currency exchange rates in an amount of SEK 61m. Operating margin was 15.7% (4.0% in 2011). On July 5, AB Volvo announced that Volvo Aero will be sold to the British industry group GKN for an enterprise value of SEK 6.9bn. The transaction, which requires approval from relevant authorities, is likely to be completed during the third quarter.