Volvo Group Explores Potential Sale of Arquus, Expects Negative Impact on Q4 2023 Income

(IN BRIEF) The Volvo Group has entered into an option agreement with John Cockerill Defense, allowing Volvo to potentially sell Arquus, a company specializing in defense vehicle manufacturing. The agreement requires consultations with employee representative bodies, expected to conclude in Q1 2024. The exercise of this option is anticipated to negatively affect Volvo Group’s operating income by around SEK 900 million in Q4 2023. Arquus constitutes roughly 1% of Volvo Group revenues and employs approximately 1,200 individuals in France. If the option is exercised, the divestment will be subject to governmental approvals and other conditions. The financial impact will be reported in the Group Functions & Other segment and excluded from adjusted operating income.

(PRESS RELEASE) GOTHENBURG, 16-Jan-2024 — /EuropaWire/ — Volvo Group has signed an option agreement with John Cockerill Defense which gives the Volvo Group the right to sell Arquus after mandatory consultations with staff representative bodies. The consultations are expected to be finalized in Q1 2024. As a result of the option agreement, the Volvo Group’s operating income will be negatively impacted by approximately SEK 900 M in the fourth quarter of 2023.

Arquus manufactures and sells specially designed vehicles to defense forces and employs about 1,200 employees in France. In 2022, Arquus represented approximately 1 % of Volvo Group revenues.

The negative earnings effect will be reported in the segment Group Functions & Other and will be excluded from adjusted operating income.

If the option is exercised, closing of the divestment will be subject to governmental approvals and other conditions.

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The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2022, net sales amounted to SEK 473 billion (EUR 45 billion). Volvo shares are listed on Nasdaq Stockholm.

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SOURCE: AB Volvo