Volvo Group completes divestment of Chinese subsidiary holding shares in Inner Mongolia North Hauler Joint Stock for approximately SEK 1.0 billion

Volvo Group completes divestment of Chinese subsidiary holding shares in Inner Mongolia North Hauler Joint Stock for approximately SEK 1.0 billion

GOTHENBURG, 14-May-2018 — /EuropaWire/ — Volvo Group has now completed the previously announced divestment of a Chinese subsidiary holding shares in Inner Mongolia North Hauler Joint Stock Co., Ltd (NHL) for approximately SEK 1.0 billion. The divestment resulted in a capital gain of approximately SEK 0.8 billion, which will affect the Volvo Group’s operating income, in the segment Construction Equipment, in the second quarter of 2018.

The divestment has a positive impact on the Volvo Group’s cash flow and net financial position of approximately SEK 1.0 billion.

Volvo Construction Equipment will continue to sell components for rigid haulers to NHL also after the divestment.

Journalists who would like further information, please contact: Joakim Kenndal, Volvo Group, Media relations +46 31 323 72 29.

For more information, please visit volvogroup.com/press 

The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs almost 100,000 people, has production facilities in 18 countries and sells its products in more than 190 markets. In 2017 the Volvo Group’s sales amounted to about SEK 335 billion (EUR 35 billion). The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on Nasdaq Stockholm.

SOURCE: AB Volvo