Financial and operating statistles 1976 VOLVO
Contents
Volvo in brief 1
Financial statistics. Consolidated 5 Financial statistics. AB Volvo 13 Operating statistics. Consolidated 21
Administration 29
No tes
Figures in Swedish kronor may be translated at the approximate 1976 year-end exchange rates as follows:
UKf: 1.00
=
Skr 7.00U.S.$ 1.00
=
Skr 4.1 ODM 1 00
=
Skr 1 75.00FF.100
=
Skr 83.00 BF 1 00 = Skr 11.45 Sfr 100=
Skr 168.00Hfl 100
=
Skr 167.00The inflation in Sweden was 1 O percent du ring 19 7 6 (9 percent 1975. 11 percent 1974. 8 percent 1973. 6 percent 1972. 7 percent 1971.8 percent 1970.4 percent 1969. 2 percent 1968 and 3 percent 1967).
Financial Reports
These reports are published regularly by Volvo:
Preliminary Report on the year's operation end of January Definite Report on the year's operation end of March
Annual Report end of April
Interim Report first quarter end of May Financial and operating statistics end of June Interim Report. first six months end of August Interim Report. first three quarters end of November
Autumn Review end of November
The Swedish Institute of Public Opinion (SIFO) has con- ducted a survey of Volvo shareholders. sponsored by the Company. A summary of the findings appears in the brochure 'Volvo through the eyes of its sharehold- ers."
The above matenal may be requested from:
Financial Relations Department
AB Volvo
S-405 08 Gothenburg. Sweden
Volvo in briaf
Ht~y a'1d buslr~
~ f)fgM1:Zdt1011
Prodact;cm f.&ctla~
~ l'>Xpe;mtwres and ~lfldllC!ng Perrom ~el G~w~ pk:JB and gc;als
R€st}tlfdl and d€veloprnor>t
Sh-1«:'110;~
VOLVO IN BRIEF
The Volvo Group develops, produces and markets products and services for transport and transport related purposes. The Group manufactures mo re than 100 products which are sold in more than 160 countries throughout the world.
History and business
In 1977 the Company is celebrating its 50th anniver- sarv as a producer of cars. AB Volvo commenced business as a wholly-owned subsidiary of AB Svenska Kullagerfabriken. SKF. in 1926 in Gothenburg. Sweden.
where the Group still has its headquarters and its targest plant. - The first Volvo productian ear left the as- sembly Iine on April 14. 1927. and the first truck in 1928. The original productian models were designed to withstand the rigors of Sweden's rough roads and cold temperatures. This emphasis on durability has been a feature of Volvo products eve'r since.
Following the acquisition in 1931 of Sköfde Gjuteri och Mekaniska Verkstad AB (now Volvo Skövde Plants).
which manufactures engines for the Volvo vehicles. the Company developed its business from an assembly to a manufacturing operation. This was the first of a num- ber of acquisitions of manufacturing companies. forming the foundation for the development of the Volvo Group.
In 1941 AB Volvo acquired a majority holding in Svenska Flygmotor AB (now Volvo Flygmotor AB).
Köpings Mekaniska Verkstads AB (now part of Volvo Bergslagen Plants) was acquired in 1942. AB Bolinder- Munktell (now Volvo BM AB) in 1950 and Olofström AB (now Volvo Olofström Plants) in 1969. Volvo BM AB and Volvo Flygmotor AB remain as subsidiaries.
while the other campanies have been merged inta the Parent Company.
In the 1960's Volvo's Swed1sh ear assembly. parts handling and Group head office were transferred to a new camplex at T orslanda. Gotheni;Jurg. which has since been expanded in several steps. The smaller Kalmar assembly plant. designed for completely differ- ent productian methods and new forms of work organl- zation. which in effect do away with assembly Iine tech-
lncreased emphasis on productian outside Sweden - up to now in the form of assembly operations. with the
main components being delivered from the Group's Swedish factories - is in response to the need for close centact with major markets.lt also reflects the natural desire of same countries to have part of the manufacturing or assembly work carried out locally. Today such plants exist in Belgium. The Netherlands. Great Britain. Canada.
Australia. Peru. Iran. lndonesia. Thailand and Malaysia.
In 19 7 4 it was decided to build an assembly plant for cars in Chesapeake. Virginia. in the Un~ed States. Due to lower demand for Volvo cars in the U.S. and the available assembly capacity in European factories. post- ponement of assembly operations was announced in December. 19 76. The plant is now used as an inspec- tion and transshipment point for imported Volvo cars for the eastern part of the United States.
Following a cooperation agreement concluded in Nov- ember. 1972. Volvo acquired a one-third interest in DAF Car B.V.. The Netherlands. in the beginning of
19 73. In Janua~y. 1975. Volvo acquired additional shares in the company and now holds a 7 5 percent interest The name was changed to Volvo Car B.V. and the remaining 25 percent of the shares are now held by DSM (Outch State Mines). which is owned by the Dutch Government.
The Company has modern productian facilities and a product program featuring two cars in the medium-size class. the Volvo 66 and the Volvo 343.
The build up of capacity in Sweden and abroad has been matehed by a gradual growth and strengthening of the distribution and dealer network. Outside Sweden the Group maintains sales companies. most of which have their own import terminals. in Western Europe.
North America. South America. Australia and the Far East. as weil as a service organization in these areas and in Eastern Europe.
T o finance sales in important markets. Volvo has be- come a major shareholder in finance campanies in Sweden and Norway and owns finance campanies in Switzerland and Belg1um.
In Sweden. a subsidiary company. Försäkrings AB Volvia. sells Volvo ear insurance. partly as an extension to the Volvo five-year "PV-guarantee" for cars sold and registered 1n Sweden.
In recent years Volvo has moved inta the field of re- creational products through the acquisition of Jota AB.
a Swedish sports equ1pment and small boat manufac- turer in 1973. Ryds Industri AB. a manufacturer of fiberglass boats in 19 7 4. and Koflach Sportgeräte GmbH. an Austrian company making boats for alpine skiing. in 1975.
Sales organization
The Volvo Group has a worldwide sales network with its own sales campanies in Sweden. Denmark. Finland.
Norway. Great Britain. West Germany. Switzerland.
Austria. The Netherlands. France. ltaly. Spain. the Un.1ted States. Canada. Argentina. Peru and Australia. Through its wholly-owned subsidiary in Scandinavia. AB Volva- tor. Volvo owns or has interests in a number of dealer- ships in the Nordie countries. enabling it to participate directly in the structural changes and growth of sales in these important market areas.
The Volvo Group has more than 2.600 dealers. some of whom have more than one outlet. Approxi-
mately 7 percent of the dealerships are located in the · Nordie area. 63 percent in Europe (excluding the Nor- die area) and 23 percent in North America.
Volvo' s share of the Swedish market for cars in 1976 was about 25 percent and for heavy trucks and buses slightly over 50 percent Although Sweden is still the most important market for the Group. the trend has been towards a growing percentags of sales in other markets. Out of the total increase in sales of Skr 8.400 million between 1972-1976. Skr 5.600 million. or 67
VOL VO IN BRIEF
Oivided.into market areas. 1976 Group sales were as follows:
Skr millions
%
Sweden 5.009 32
Nordie area excluding Sweden 2.069 13 Europe excluding Nordie area 4.741 30
North America 1.708 11
Other markats 2.216 14
Total 15.743 100
The Group is anempting to improve the balance be- tween the major market areas and to increase its pene- tration of additional markets.
In order to develop sales for all product groups in mar- kets outside Europe and North and South America. the Group has created a subsidiary. Volvo International Development Corporation. The new unrt will evaluate the particular requirements of developing markets. in- cluding possibilities for local assembly or manufacture of products. lt will also market the Group's products in these areas. The Group considers that its marketing organization is weil equipped to handie the increasing volume of sales expected in the future.
Productian facilities
The Group's principal productian facilities are located in Sweden. where Volvo has 29 factories. including as- sembly plants for cars. trucks. buses. marine and indus- trial engines. construction equipment. farm and forest machinery and aircraft engines. as weil as factories for productian of such vital components as engines. gear- boxes. axles. brakes and bodies.
Volvo has established wholly-owned assembly plants in Belgium. Great Britain. Canada and Australia. and partly- owned plants in The Netherlands. Iran. Malaysia. Thai- land and Peru.
Volvo Car B.V.'s facilities inck:Jde three modern plants. in Bom and Oss in The Netherlands. and in St. T ruiden in Belgium. as weil as an import facility at Beesd in the Netherlands.
In cooperation with Renault and Peugeot. Volvo has a factory at Douvrin in France for the manufacture of ear engines. ·
Capital exj)enditures and financing
Over the five-year period 1972-1976. the Group inves- ted some Skr 3.900 million in property. plant and equip- ment. the bulk or two-thirds of it in Sweden. lnvestment in plant and company acquisitions has been in the range of 5 to 1 O percent of Group sales per year. Most investment has related to the gradual expansion of productive capacity, but investment in new facilities for technological development. and for the strengthening of the marketing organization. has also been significant.
Ouring the last two years investments by product groups were (Skr millionsk
1975 1976
C ars 389 362
Trucks and buses 294 190
Marine and industrial engines 45
20
Construction equipment. farm
and forest machinery 250 76
Aircraft engines. etc 43 49
Other product groups 13 7
Group total 1.034 704
Among the major investments in Sweden are an ex- pansion of the capacity of the diesel and petroi engine factorias at Skövde. increased ·assembly capacity for trucks at several places and a new assembly plant for tractors and forest machines at Hällby.
In Belgium. an assembly plant for medium heavy trucks has been built. In addition a major central warehouse for parts has been completed in Ghent. Belgium. to serve the European markets outside the Nordie area.
The Group's operations have in recent years been characterized by a continued high rate of expansion.
Over the five-year period 1972-1976. Group sales have more than doubled. Warking capita! over the period has required considerable additions as the grow- ing business volume and inflationarv trends have made heavy demands on capita! for inventory and receiva- bles.
Good operating results combined with the Group's policy of consolidatian have made possible a large measure of internally generated financing of invest- ments. The Group's untaxed reserves rase by some Skr 2.200 million from 1971-1976. Out of reporled net profits during the period. some Skr 194 million. or 33 percent have been retained in the business.
3
VOLVO IN BRIEF
PersonneJ
Volvo Group. number of employees
Product group C ars
Trucks and buses
Marine and industrial engines Construction equipment.
farm and forest machinery Aircraft eng1nes. etc Recreational products Other products and central services Group total
General plans and goals
Y ear-end 1975 1976 34.000 33.100 13.600 13.800 2.900 2.700 6.300 6.400 2.800 2.800 700 800 2.700 2.800 63.000 62.400
In 19 76 the Volvo Group was the targest industrial organization in the Nordie area in terms of sales. The Group's export sales from Sweden accounted for more than 8.5% of total Swedish exports in 1976. The Group is the largest manufacturer of cars. trucks and buses. in the Nordie area. At December 31. 1976 the Group had 62.400 employees worldwide. 45.200 of whom were in Sweden.
As a result of its product development programs the Volvo Group has a competitive range of products wh1ch is weil matehed to current market needs. lt is the policy of the Group to continue to invest its resources in the development and improvement of transpartatian products w1th the emphasis on greater economy. quaii- ty and safety. At the same time. in order to take full advantage of its existing range of activities. the Group intends to achieve a better balance in the distribution of sales volume among its various product groups.
The Group has been able to save certain product de- velopment costs as a result of associatio.ns with Euro- pean automobils and truck manufacturers.
On May 6. 19 77 the boards of directors ot AB Volvo and Saab-Scania AB considered a proposal to combine the two companies. Following consultation with repre- sentatives of the employees of the two companies. the proposal will be resubmitted to the boards which will then have to decide whether to recommend to the shareholders that the proposal be accepted.
Research and development
The Volvo Group places great emphasis on the quality and safety of its products and maintains an extensive and continuous research program. A modern research cen1er. completed in Gothenburg in 1972. currently employs a statt of about 1.000 people. In recent years expenditures for research. development and tooling has been between 5 and 1 O% of Group sales revenue.
Volvo automotive products comply with the safety and environmental requirements currently applicable in the United States and other markets in which they are sold.
The Company believes that its safety and antipollution standards will keep pace with. or be in advance of. the automotive industry in general. lt accordingly expects that its automotive products will continue to be accept- able under the applicable safety and environmental requirements of all major markets.
In addition to research and development related to automotive products. the Company has been a pioneer in improving the working environment of its employees.
In particular. new methods of assembly and new ma- terials handling systems have been developed. The Company also markets its expertise relating to the design and operation of assembly plants.
Shareholders
Volvo has approximately 125.000 shareholders. The company is free from darninating owner interests.
Volvo's shares have been Iisted on the Stockholm Stock Exchange since 1935. on the London Stock Exchange since 19 72 and on the Stock Exchanges of Dusseldorf.
Frankfurt/Main and Hamburg since 1974.
In a survey in 1974 it was shown that 45 percent of the share capita! was owned privately and 20 percent by institutions. The remaining part. 35 percent of the share capita! was administered by banks etc on behalf of owners. Less than five percent of the Volvo share capital is owned by persons or institutions outside Sweden.
Financial Statistics, Consolidated
lr!f' .. ome ~'lem i967-19'/5
Stat-err.ert
of 5Q\..Ifte and ~atto11 of fuods :007-1976 Gc0$'5 cap!tilllill'per,d!tufes Dy :TIE.'"ket aredS 1970-~ 976Ba!ar~::0 Sheet 1007--1976
Capltai:MkJn ~ 1976
Sa~s ~ prr~ groups 1900-1976 Sales lYy rr lal'i<;et ~'!taS 1968 19
7
6E»ports from SwOOen l %H-1976 Ratum on 1!1VE<Sirneot 1973--19 76
lnc~lfne' l'tS fl percenl.3qe of sale, 1 [t71 -
1976
~<:Mand:nwr·~ 1972 1971
FINANCIAL STATISTICS. CONSOUDATED
1967 1968 1969 1"970 1971 1972 1973 1974 1975 1976
lncome statements for 1967- 1976 (Skr millions)
Sales
3.410 3.865 4.400 5.324 6, 104 7.346 8.986 10.537 13.692 15.743
Less: Cost of sales. selling and
administrative expenses
3.028 3.344 3.789 4.7 65 5.499 6. 383 7.835 9.476 12. 547 14.441
382 52 1 6 11 559 605 963 1 .151 1 .06 1 1.145 1.302
Less: Provision for depreciation
84 94 124 13 1 166 237 285 358 488 558
Operating income
298 427 487 428 439 726 866 703 657 744
Add: Interest received less paid
19 43 56 37 1 9 36 40 (7) (142) (172)
Other lncome/(expenses)
1 2 10 (6)
5( 4) 3 4 1
1(14) 10
lncome before allocations and taxes
31 8 472 553 459 463 758 909 737 501 58 2
Less: Allocation to/(reallocation fromt.2
General inventory reserves
5 22 57 167 85 1 02 179 384 375 343
Extra depreciation (6)
(1 6) ( 23) 12 39 21 41 ( 11 ) 32 3
Write-down of shares
9 1 11 10 20 10 23
lnvestment reserves
112 167 174 37 89 212 191 51 43 90
Other allocations
97 (9) (1 3)
lncome before taxes
198 298 334 243 240 403 488 193 60 159
Less:Taxes
107 167 166 112 11 3 228 240 86 74 112
Minority interests in net results
1 1 2 2 (22) (16)
Net income
90 131 168 131 127 174 246 105 8 63
311n this arnount an extraordinary profit made by Volvo BM on sale of ftxed assets is included. (Skr 40 million) 2AII allocations except the write-down of shares represent
untaxed reserves provided by the legislatian 1n Sweden and same other countries.
3Group net 1ncome calculated according to accounting principles used in the United States. will be found on page
19.
FINANCIAL STATISTICS. CONSOLIDATED
1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
Statement of source and application of funds 1967-1976 tSkrmillionsl1 Source of funds
Net income
90 131 168 131 127 174 246 105 8 63
Add: Non-cash charges:
Depreciation. etc
95 87 125 142 217 294 389 436 59 1 616
Allocation to general ·tnventory reserves
5 22 57 167 85 102 179 384 375 343
Allocation to investment and work
environment reserves
112 167 174 37 89 212 191 148 34 90
Total
302 407 524
~477 518 782 1.005 1 ,073 1.008 1 , 112
Less: Dividends to Parent Company shareholders
31 38 41 41 41 49 75 78 94 1 06
Resulting in a cash flow of
271 369 483 436 477 733 930 995 914 1 .006
New issues of Parent Company shares
151 12 100 183 137
lncrease in long-term liabilities
29 18 57 55 246 241 1 68 400 848 326
lncrease in current liabilitites
121 186 440 130 700 367 849 1.036 788 77 1
Total sources of funds
421 573 980 621 1.423 1.492 1.959 2.531 2. 733 2.240
Appltcation of funds
Additions to inventories and receivables
63 68 499 497 440 415 788 1.71 4 1 .582 1.243
Funds available before year's investments
358 505 481 124 983 1.077 1.171 8 17 1 '151 997
lnvestments in:
Property, plant and equipment lpartly
through acquisitions)
181 162 407 478 637 657 769 871 1 , 034 740
Shares and loans
4 3 5 5 4 9 1 26 11 2 25 3 1
lncrease (decrease) in blocked ac-
counts with Bank of Sweden
( 13) 22 (2) 21 (36) 12 96
(1)(11) (221
T otal investments
172 187 410 504 605 760 891 982 1. 048 749
lncrease (decrease) in cash and short-term notes
186 318 71 (380) 378 317 280 (1 65) 103 248
Cash flow
x 100 = 158% 197% 118% 87% 79% 97% 104% 101% 87% 134%
Total investments
Total investments
x 100 = 5% 5% 9% 9% 10% 10% 10% 9% 8% 5%
Sales
Gross capital expenditures by market areas 1970-1976 (Skr millions)
Sweden
410 487 466 507 607 674 407
Nordie area excluding Sweden
6 11 14 36 27 12
4Europe excluding Nordie area
27 83 128 80 107 265 197
North America
9 17 35 37 43 54 86
Other markets B
14 9 18 38 29 10
Total
460 612 652 678 822 1. 034 704
11n Connection with the change in accountlng principles not been changed. however. As a result. the statement of with principles applied earlier and including Volvo Car used in prior years. the 1975 accounts have been prepar· source and application of fu nds represents lunds supplied BV:s assets and liabilities at year·end 1974 shows a rate ed as if AB Volvo had had a 75 percent interest in Volvo and used within the Group during 1975. A statement of of self-financing of 65 percent and an increase of Skr 175
Car B.V. at December 31. 1974. Figures for 1974 have source and application of funds preparad in accordance million in liquidity.
7
FINANCIAL STATISTICS. CONSOLIDATED
1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
Balance Sheet at year-end 1967-1976 (Skr millions) Assets
Current assets
Cash. bank and short-term notes 594 912 982 603 981 1.298 1,578 1.414 1.589 1,837
Accounts receivable 618 684 929 1.011 1.222\ 1.481 1.743 2.102 2.918 3.336
lnventories 948 950 1.204 1.628 1.857 2.014 2.588 3.922 5.137 6.015
Current assets 2.160 2.546 3.115 3.242 4.060 4.793 5.909 7.438 9.644 11.188
Blocked investment accounts
with Bank of Sweden 16 38 36 57 20 32 128 127 115 93
Fixed assets 798 859 1.111 1.405 1.851 2.326 2.777 3.271 4.273 4.424
Total assets 2.974 3.443 4.262 4,704 5.931 7,151 8,814 10,836 14.032 15,705
Liabilities and shareholders' equity
Current liabilities 1.119 1.305 1.745 1,875 2.575, 2,943 3.792 4.828 6.175 7;004
Long-term liabJIJties 277 308 355 406 648 883 1.049 1.447 2.583 2.923
Special allocations (untaxed reserves) 942 1.118 1.329 1.577 1.776 2.109 2.581 3.115 3.563 3.984
Minority interests in capita/ 20 4 5 11 8 10 80 65
Shareholders' equitv 616 712 833 842 927 1.205 1.384 1.436 1.631 1.729
TocalliabJiities and shareho/ders' equitv 2.974 3.443 4.262 4.704 5.931 7.151 8.814 10.836 14.032 15.705
Assets pledged 426 468 705 620 1.029 1.049 1,523 1.876 2.151 2.361
Contingent liabilities 107 94 136 171 385 303 213 402 621 531
Capita! commitments 1 N/A N/A N/A N/A 967 1.068 923 1.239 1.171 1,051
11nvestments decided on but not yet provided for at the end of the year.
FINANCIAL STATISTICS. CONSOLIDATED
Capitalization of the Volvo Group
The following table sets out the capitalization of the Volvo Group showing long-term debt and sharehold- ers· equity as at December 31. 1976.
Long-term debt of the Volvo Group Parent Company
Unsecured
Sfr 60 million 8% B'onds
Sfr 20 million 9% No tes
Sfr 10 million 9 1/4% Notes Skr 75 million 7 1/2% Sonds Skr 100 million 73/4% Sonds Skr 100 million 9 1/4% Sonds U.S.$ 25 million 8% Bond s U.S.$ 25 million 9 1/2% Bond s U.S.$ 6 million 9 3/4% Bond s H fl 50 million 83/4% B onds H fl 22.5 million 11 1/2% Bankloan H fl 15 million 11 1/2% Bankloan H fl 25 million 9 7/8% Bank loan H fl 25 million 9 7/8% Bank loan Other
T otal unsecured Secured
Subsidiary Campanies Unsecured
Volvo BM AB
Skr 50 million 9 1/4% Sonds Other
Volvo Car B.V.
H fl 25 million
8 5/8%
Private loan H fl 25 million 7 3/4% Private loan H fl 25 million 7 1/4% Private loan H fl 25 million 11% Private loan H fl 50 million 9 1/2% Private loan H fl 25 million 9 1/4% Private loan BF 300 million 7 9/10% Private loan BF 300 million 93/4% Private loan Lir 6.043 million 61/2% Private loanFF 61.6 million 83/8% Export credit
Other
Other subsidiaries T otal unsecured Secured
Total·long-term debt of the Volvo Group
1975/90 at a price of 99 1/2%
1975/80 at a price of 98%
1975/82 at a price of 97 3/4%
1971/91 at a price of 100%
1974/89 at a price of 100% 1975/90 at a price of 100%
1972/87 at a price of 100 1 /2%
1975/85 at a price of 99 1/2%
1975/85 at a price Cif 100%
1975/85 at a price of 100% 1974/89
1974/86 1976/91 1976/91
1976/91 at a price of 100%
1970/85 1971/86 1972/87 1974/94 1975/2000 1976/91 1973/85 1976/86 1966/79 1975/81
Skr m1llions
101 34
17 63 88 87 113 103 24 84 38 25 42 42 60 921 233
47 52
34 38 42 42 84 42 28 35 7 42 43 309 845 390 2.389
Total long-term debt of the Volvo Group Pension liabilities
Deferred income tax liability Minority interests
Shareholders· equity , Share capital Legal reserves Retained earnings Special allocations
Less deferred income tax liability Total capitalization
534 2,112 65
883 712 135 3.984 (2.112)
Maturities of the total long-term debt are due in:
1978 272
1979 235
1980 236
1981 222
1982 and thereatter 1.424
Total 2.389
2.389
2.711
3.602 8.702
g
FINANCIAL STATISTICS. CONSOUDATED
1969
. .
1970 1971 1972 1973 1974 1975 1976Sales by product groups 1969-1976 (Skr millions)
C ars 2.516 3.127 3.640 4.332 5.132 5.569 7.525 8.441
Trucks 9141 1.0371 1.127 1.396 1.854 2.307 2.990 3.634
Buses 1 1 61 112 134 211 321 428
Marine and industrial engines 177 202 .. 256 335 424 507 601 747
Construction equipment. farm and forest
ma chinerv 583 680 745 819 986 1.349 1.588 1.778
Aircraft engines. hydraulic machines. etc. 132 117 189 255 290 330 372 379
Recreational products /" - 84 112 155
Other products (development commissions.
rnachine tools. etc.) 78 161 86 97 166 180 183 181
Total 4.400 5.324 6.104 7.346 8.986 10.537 13.692 15.743
Sales by market areas 1969-1976 (Skr millions)
Sweden 1.736 1.856 1.923 2.209 2.703 3.385 3.993 5.009
Nordie area excluding Sweden 739 850 947 1.043 1.258 1.388 1.625 2.069
Europe excluding Nordie area 822 1.150 1.487 2.054 2.543 2.594 3.848 4.741
North America 769 1.079 1.271 1.406 1.592 1.851 2.165 1.708
Other markets 334 389 476 634 890 1.319 2.061 2.216
Total 4.400 5.324 6.104 7.346 8.986 10.537 13.692 15.743
Exports from Sweden 1969-1976 (Skr millions) 2.071 2.578 3.058 3.728 4.477 5.448 6.789 6.850
1Buses included in thefigurefor trucks in 1969-1970.
FINANCIAL STATISTICS. CONSOLIDATED
Return on investment1, 1973-1976 (percent) Cars
Trucks and buses
Marine and industrial engines
Construction equipment. farm and forest machinery Aircrah engines. hydraulic machines. etc.
Recreational products Group total
lncome as a percentaga of sales3 1971-1976 C ars
Trucks and buses
Marine and industrial engines
Construction equipment. farm and forest machinery Aircraft engines. hydraulic machines. etc.
Recreational products Group total
l The return on investment of the various product groups has been calculated on the basis of a model developed within the Volvo Group whereby estinnated product group eamings are related to capita! employed.
In determining caprtal employed for each product group.
all assets except cash and short-term nates have been 1ncluded. without deduction for liabilities. In addition.
cap.ital has also been determined on the bas1s of the current value of property, plant and equipment and depreciation on these values. among other factors.
The stated return on investment for the Group shows the return on total capita! employed. including cash and short-term nates.
2Excluding products from Volvo Car B.V. the return on investment is 4 percent
3This profit margin expresses the relationship existing between the respective product group's share of Group income belare allocations and taxes and its sales.
4Excluding products from Volvo Car B.V. the income is 3 percent
1~Z1 1972 1973
14 15 1 8 N / A N/A
911 12
8
11
910 11 12
11 16 15
3 5 9
10 11 15
7.6 10.3 10.1
1974 1975 1976
6
22
213 11 11
12 3 5
14 11
711 11 10
1
- 18 -1
g 6 6
3
141
11
7 9g -1
1
12
9 3
15 15 19
- 3
-18- 5
6.6 3.7 3.7
11
FINANCIAL ST A TISTICS. CONSOLIDA TED
1972 1973 1974 1975 1976 1977
Ouarterly sales and income 1972-1977
Sales {Skr mtllions)
1st quarter -1.684 2.078 2.312 3.028 3.461 3.428
2nd quarter 1.655 2.097 2.607 3.283 3.858
3rd quarter 1.866 2.246 2.719 3.474 4.099
4th quarter 2.141 2.565 2.899 3.907 4.325
Whole year 7.346 8.986 10.537 13.692 15.743
lncome before allocations and taxes (Skr millions)
1st quarter 196 280 235 166 162 81
2nd quarter 148 208 228 119 184
3rd quarter 172 214 111 63 144
4th quarter 242 207 123 153 92
Whole year 758 909 6971 501 582
lncome before allocations and taxes as a percemage of sales
1st quarter 11.6 13.5 10.2 5.5 4.7 2.4
2nd quarter 8.9 9.9 8.7 3.6 4.8
3rd quarter 9.2 9.5 4.1 1.8 3.5
4th quarter 11.3 8.1 4.2 3.9 2.1
Whole year 10.3 10.1 6.6 3.7 3.7
Adjusted income in Skr per share2
1st quarter 9.00 10.70 8.80 6.00 4.90 2.20
2nd quarter 6.80 8.00 8.60 4.20 5.50
3rd quarter 6.80 8.20 4.00 1.90 3.80
4th quarter 9.30 7.80 4.40 4.60 2.40
Whole year 29.10 34.20 25.10 15.00 15.50
1Extraordlllary profit made hy Volvo BM AB on sale of lixedassels in 1974 has been excluded ISkr 40 mill•onl.
2Adjusted income is def11~eci as 1ncome belare allocations and taxes reduced by a tax l1ab1lity of 53%. The calcula·
tion is based on the number of shares outstanding at the end of each penod
Financial Statistics, AB Volvo
Shert> capUI 19.26-1976 Numbt,v otsr.arc~ 1%7-1976
~J)')!" share 1007 1976
Dtst~r. of <shW'!:'S ~ 19 /6 Th,:, ~
lef9• *
Shl'feholders Dec 19 75Clt.ota'tiOfll of Volvo~~& 1968-1977 Af;cwnmq pt :nc~
~1"1tad ~ ~ c~ 1n accord;llr~CE-;
With <KCO'..illttng prlflCV)oo 1!1 tht:J U S
FINANCIAL STATISTICS, AB VOlVO
AB Volvo, share capital 1926-1976 (in Skr) Share capital Nu m ber Dividend
of shares pershare
1926 200.000 4.000
1930 4.200,000 84.000
1935
113.000.000 260,000 2.50 1937
18.200.000 364.0002.50
193818.200.000
364.000 3.- 1942 20.
000.000400,()()()2 3.-
1943
25.000.000 500.0003.-
1945 37.500,000 750.000 3.-
1951
56,250.000 1.125,000 3.-
1952
75.000.000 1.500.0003.- 1954 75.
000,000 1.500.000 3.60 1955 90,000.000 1,800,
000 3.-1959 108.000.000
2.160.0003.
-1960 114.000.000 2.280.000 3.- 1961 114.000,000 2.280.000 3.75 1962 142.500.000 2.850.000
171.000.000
3.420.0003.- 1963 17 1
.000.000 3.420.0004.- 1964 228.000.000 4.560.000 3.
-1965
228.000.0004.560.000 3.90 1966 273,600.000
5.472,000342.000.000
6.840.0003.50 1967 342.000.000 6.840.000 4.50
1968 342.000.0006.840.000
5.501969
342.000.000 6.840.0006.- 1970
513.000.00010.260.000 4.- 1972
1598,500,000 11.970.000
607.180.000 12.143,600
613.430.0004 12.268.600 4.-
1973
624.505.00012.490.100
6.-1974
1 653,755.00013,
075.100 6.-1975 784.506.000 15.690.120 6.- 1976 882.569.250 17,651.385 6.-
11ntroduction on the Stockholm Stock Exchange in 1935. on the Lon- don Stock Exchange in 1972 and on Hamburg. DUsseldorf and Frankfurt Stock Exchanges in 197 4.
2Rights issue shares not dividend bearing in 1942.
Dividend.
total
650.000 910.000
1,092.000 1.092.0001.500,000 2.250,000 3.375.000 4.500.000
5.400.0005.400.000 6.480.000 6.840.000 8,550,000
10.260.00013.680.000 13.680.000 17.784.000 23.940.000 30,780,000 37.620.000 41.040.000 41.040.000
49.074.400 74;940.600
78.450.600 94.140.720105.908,310
rights issue
20: 1
Skr 1 00 rights issuerights issue
2:5
Skr50
rights issuerights issue
1
:4 Skr 50 rights issue1
:2 Skr 50 rights issue1
:2 Skr 50 scrip issue1:3
scrip issue1
:5 scrip issue1 :5
rights issue3rights issue
1
:4 Skr 60 scrip issue 1 :5 scrip issue 1 :3 rights issue1 :5
Skr 75 scrip issue1:4
scrip issue
1
:2rights issue
1
:6 Skr80
rights issue3rights issue3 rights issue3 non-public issue5 rights issue
1
:5 Skr 70 rights issue1
:8 Skr 70The share capital of AB Volvo at December 31. 1976.
Skr 882.569.250. was divided into 7.831.350 A-shares and 9.820.035 8-shares. each with a par value of Skr 50. Each of the A-shares cq_rries one vote and each of the 8-shares carries one-tenth of a vote but in all other respects they rank pari passu with the A-shares.
Out of Volvo's shares only
1.371.260
"A" shares.and 2.117.183 "B" shares. known as free shares (re- presenting less than two-fifths of the share capital and carrying lessthan one-fifth of the votes for the total share capital) may
be
acquired either by subscription or transfer by (i) any non-Swedish citizen. corporation or institution; (ii) a ny· Swedish trad i ng partnership with a non-Swedish partner. (iii) any Swedish cooperative association; (iv) any Swedish limited company issuing bearer shares: or (v) any other Swedish limited company whose Articles of Association do not contain certain restrictions on the acquisition of certain assets .. Free shares are designated "Fria" on the relative share certifi- cates. The remaining Volvo shares are known as re- stricted shares and may only be acquired by subscrip- tion or transfer by Swedish citizens and certain Swedish companies or associations. Theseshares are designat- ed "Bundna" on. the relative share certificates.FINANCIAL STATISTICS. AB VOLVO
Number of shareholders
Data per Share 1967-1976, adjusted for issues
Restated n et income. Skr 1 Dividend. Skr
Share price at year-end. Skr P /E at year-end
Dividend yield at year-end. percent Growth rate of dividend. percent
1 Restated net income per share is deflt18d as income belare allocations and taxes reduced by a tax Hability of 50 percent for 1967-1971 and 53 percent for 1972-1976.
Adjustments for issues have been made. On calculating the results for 1974 a capita! gan of Skr 40 milion by Volvo BM has been excluded.
1967
56.900
, 1.90 2.35 72 6 3.3 28.6
1968 1969 1970
58.300 61,500 72.000
16.90 21.10 17.60
2.87 3.14 3.14
180 176 121
11 8 7
1.6 1.8 2.6
22.1 9.4
o
1971 1972 1973 1974 1975 1976
82.500 99.300 108.000 116.900 121.000 124.300
17.70 25.20 29.60 21.70 14.20 15.50
3.14 3.46 5.19 5.19 5.68 6.00
181 241 177 106 131 93
lO 9 6 4 8 6
1.7 1.4 2.9 4.9 4.3 6.5
o
10.2 50.0o
9.4 5.615
FINANCIAL ST A TISTICS. AB VOL VO
Distribution of shares, December 31, 1976
This table has been compiled primarily from No. of Percent of Total shar~ Percent Average No.
information prov1ded by Värdepapperscentralen s hare- all share- owned in of share of shares VPC AB (the Swedish seeurities Register Center) holders holders size class capita l per holder Volvo shareholders with:
Max 1
00
shares 96.900 77.93.147.000
17.8 32Min 101. max
500
shares23.200
18.74.775.000 27.1 206
Min
501.
max 1.000
shares2.500 2.0 1.749.000 9
.9700
Min
1.00 1.
max10.000
shares1.400 1.1 3.004.000
17.02.146
More than 1
0.000
shares 840.1
4.965.90028.1 59.118
Share coupon certificates not ·
yet exchanged approx 210
0.2
approx 10.500 0.1
approx 50Total approx 124.300 100.0 17.651.385
100.0
142The ten largest shareholders in Volvo as at December 31, 1976
Data from VPC AB. nominee registered holdings Number of in% of Number of in% of
not included. shares share capita\ votes total votes
Allmänna Pensionsfonden. Fjärde Fondstyrelsen !The Na- v
tional Pension lnsurance Fund. Fourth Furid Managing Board)
908.162 5.15
492.6625.59
lnvestment AB Collector
,.
581.870 3.30 N/A N/ASvenska Handelsbankens Pensionsstiftelse ...
(pension fund of Svenska Handelsbanken) 434.858 2.46 310.587 3.52.
AB Custos (a Swedish investment company) b
281.000
1.59 259.889 2.95Svenska Personal-Pensionskassan lone of the
largest Swedish private pension funds)
268,800
1.52 117.7441.34
Livförsäkringsbolag AB Skandia (one of Sweden's largest
private Iife insurance companies)
213.164 1.21 84,208
0.96Broströms Rederi AB (shipping company) (, 181.016 1.03 181.016
2.05
Försäkrings AB Skandia (a Swedish insurance company) v
147.136 0.83 53.308 0.60
VADO Beheer B.V., Eindhoven. The Netherlands 110.000
0.62
11.0000.12
lnvestment AB Promotion 108.000
0.61
80,0550.91
FINANCIAL STATISTICS. AB VOLVO
Quotations of Volvo shares on the Stockholm Stock Exchange, 1968-April 1977 (closing price. highs and lows per months)
:F
1:2!
N 1:6-80...
l l
450 l 300
'r···. ''fl~' il
1 . . .···l • i ••
400 l
~.·~.~ ••
••• h ... ~ ...
' l 250350 ~~
... .
·~
... J P•l IL •. ! .111 ... .1 l .
')'<!O"" JZOO l
•••• '11t,"'
'"l"'"'Jll·l· . -. .
l...1..5.Q_(
~ IU i
t l! l .-;'1.•
150.
Z O <l
j Il .
r !
• 125 l. !
ll ~;n
i
100i
:1 i~ .
~.125 j 80 l
l
:
l
• 70100
r:--
l_ l--------
90 l 60 l
1968 1969 1970
.
l l 1971 1.
1972 1973.
l ll
Source: Aktiv P1acering ab
j
N 1:5-70350
.
. .. ... . .
300300 l
1
llz5o
l 250
.,
l.
l.
zoo!J
l III !
2 ot 175
1,1 .,
l' .
l. ....
150 l
l.
ldJII
l lJ •
.. l t z
l
125
Il
1III l
.
100'100
:
90i
8080
.. ... ... .
7070 l
i 60
60
.
.
501974
~
A2_b,.,J:·"
~ · .... · •• i • ••1975
!N 1;8-70 ho o
i
z 5o---. . .
l
zoo
•175
i
l.
~l1
11
t.
12:•r. .
l ho o
.
90. I ao
: 70 J
i
60!
50.
45.
f40 19761l Il .... ••••
l 977
17
-
FINANCIAL STATISTICS. AB VOLVO
Accounting principles
Volvo Group Accounts
The Group accounts comprise the Parent Company and all subsidiaries. which are those campanies in which AB Volvo owns more than 50 percent of the shares. The Group accounts are based on financial statements of all Group campanies as of December 31.
The Consolidated Balance Sheet is based on the pur- chase method. a characteristic of which is that income of the subsidiaries is not included in Group retainad earnings if such income was generatad prior to the date the subsidiary was integrated with the Group.
The Parant Company holds shares of subsidiaries which were received in exchange for Volvo shares carried on the books at the par value of the Volvo shares issued for purposes of exchange.
The excess value of shares has. in the main. been V:Jrit- ten down against the general share reserve of the Par- ant Company. The excess value consists of that portion of the book value of a subsidiary's shares which ex- ceeds the shareholders' equity of the subsidiary at the date it was acquired.
lncome statements of campanies acquired during the year are included in the Consolidated lncome Statement only for that portion of the year during which the re- spective campanies have been a part of the Volvo Group.
In consolidating the foreign subsidiaries' balance sheets.
current assets and liabilities have been translatad at year-end exchange rates. Long-term liabilities have been translated at the higher of year-end exchange rates and the rate at the date the liability was incurred.
The exchange rates in effect during the year of acquisi- tion have been used for other items. Exchange differ- ences arising therefrom have increased the current liabilities shown in the Consolidated Balance Sheet.
The income statements of foreign subsidiaries have been translatad at average exchange rates during the year. Net income reported by the foreign subsidiaries has. however. been translated at year-end exchange rates when this has been justified by proposed divi- dends to the Parent Company, or when the year-end exchange rate is lower than the averaga rate for the year. Net losses have been translatad at the higher of year-end or average rates and the resulting differences have been charged against Group operating income.
Exchange losses on retained earnings carried forward as a result of the fact that the retainad earnings were boaked at higher exchange ratesthan those at year- end. or the opposite in the case of losses carried for- ward. have been charged against Group operating income.
Assets and liabilities in foreign currencies Assets and liabilities in foreign currencies of Group campanies in Sweden have been translatad to Swedish kronor at rates of exchange which. in the case of as- sets, are the lower of those recorded earlieror year-end rates; and. in the case of liabilities. at the higher of the rates when the liability was incurred or year-end rates.
lnventories
lnventories are shown in the Balance Sheet at the lower of east in accordance with the first-in. first-out method.
or replacement value. Adequate provision h::Js been made for obsolescence. The value shown for invento- ries does not exceed the sales value of the products atter deduction of selling costs.
De preciatian
The Group accounts make a distinction among three types of depreciation: depreciation for east accounting purposes. depreciation according to plan and extra de preciatio n.
Depreciation for east accounting purposes is used by the productian campanies for east calculations and is based on current procursment costs of the assets and
For financial accounting. cost accounting depreciation is replaced by depreciation according to plan at rates that are largely the same but based on the original cost of the assets. Buildings are generally depreciated at 2 to 4 percent annually while the depreciation on most machi- nerv is 1 O to 20 percent per year. in both cases with- out regard to possible direct write-downs of the assets against the investment reserve. In the sales campanies and the non-European productian campanies deprecia- tion allowable for tax purposes is regarded as deprecia- tion according to plan.
Depreciation according to plan is included in "Cost of sales. selling and administrative expenses" and informa- tion on its amount appears in the Nates to the financial statements.
The difference between depreciation allowable for tax purposes and depreciation accord1ng to plan is termed extra depreciation. See below. "Special allocations (un- taxed reserves)."
Special
all~tions
(untaxed reserves)General ·
Tax laws in Sweden and certain other countries offer campanies possibilities of strengthening thew financial position through allocations to untaxed reserves. Thus campanies can. to a certain extent dispose of reported income in such a way that it remains within the busi- ness without being taxed irnmediately.
The untaxed reserves may be considered approxi- mately one half as a latent tax liability and one halt as shareholders' equity. The latent tax liability may be described as an interest-free debt for an undetermined period. If a withdrawal is made from the untaxed re- serves. the amount recovered becomes subject to income tax.
The allocations from income for the year that are made for purposes of consolidatian are shown iri the lncome Statement under the heading "AIIocations." The accu- mulated value of the untaxed reserves created in such
FINANCIAL STATISTICS. AB VOLVO
General inventory reserve
In Sweden and certain other countries campanies are permitted to make allocatlons to general inventory reserves. In accordance with Swedish tax law. the general inventory reserve may, as a general rule.
amount to a maximum of 60 percent of the value of the inventory shown in the Balance Sheet at year-end.
lnvestment reserve
The reserve for future investments was established by Swedish law to stimulate investment during perlods of low economic activity. lt has also been used to a large extent as an instrument of labor market policy and to promate the decentralization of industry.
Swedish earparatians may allocate a maximum of 40 percent of their income before tax to the investment reserve. A condition of such allocations isthat 46 per- cent of the amount is deposited in a non-interest-bear- ing investment account in the Bank of Sweden.
With the approval of Government authorities. the invest- ment reserve may be used for the direct write-down of fixed assets and an amount corresponding to the ap- prova\ may be withdrawn from the investment account.
After an asset has been written down against the in- vestment reserve. only the residua\ value of the asset may be depreciated for tax purposes. Permission may also be received for the utilization of future allocations to the investment reserve in accordance with a com- pany's long-term investment plans.
The investment reserve shown in the Balance Sheet represents allocations not yet utilized. while direct write- downs of the value of assets are shown as part of accumulated extra depreciation.
Special investment reserve and work environment re- serve
In 1974 Swedish campanies were required by law to make allocations to a special investment reserve and a work environment reserve. Special rules apply to the utilization of these reserves. In addition. the entire amount allocated had to be deposited in non-interest- bearing accounts in the Bank of Sweden. In most other respects. the same principles applying to investment reserves apply to the special reserves.
lnventory investment account
In order to facilitate financing of increases in inventory during periods of low economic activity. compan1es may obtain permission to transfer funds from the in- vestment reserve to the inventory investment account.
When this occurs. 46 percent of the a mount transferred may be withdrawn from the investment account depo- sited in the Bank of Sweden. After three years. the inventory investment account normally becomes sub- ject to tax but may again be allocated to the investment reserve.
Extra depreciation
In the Consolidated statements. extra depreciatiön con- sists of the difference between depreciation taken for tax purposes and depreciation according to plan.
Swedish tax law permits full deprec1at1on of rnachinerv and equipment over a five-year period. or an average of 20 percent per year.
Direct write-downs against the investment reserve are shown as extra depreciation. Most of the item "Accu- mulated extra depreciation" in the Balance Sheet con- sists of such direct write-downs. Because depreciation according to plan is also taken on assets written down against the investment reserve. earlier accumulated extra depreciation may be released. The amount so released is shown in the lncome statement as a re- transfer of extra depreciation. which thereby increases taxable income.
Group contnbutions
Group contributions in the form of transfers of profits may. under certain conditions. be made between Swedish campanies within the same group. Such con- tributions are tax deductible costs for the donor and taxable income for the recipient.
Write-downs of shares
The write-down of shares and transfer to general share reserve IS an expense that is non-deductible for tax purposes. The general share reserve. which is deducted from the book value of shares. has been created out of taxed funds.
Adjusted net income calculated in accordance with accounting principles in the U.S.:
The Swedish accounting principles followed by the Volvo Group in calculating net income (see pages
18-19) differ from the pr.lnciples applied in accounting practice in the United States.
American accounting methods require that:
- The effect on taxes of the difference between re- ported income before allocations. and taxable in- come be shown.
Tax costs be eyeled more preciselv (primarily de- ductions for municipal taxes).
Interests in net results of associated campanies be included in net income. and that
Receivables and payables in foreign currencies be translated at year-end exchange rates.
The accompanying table shows Volvo Group net in- come calculated to include actjustments for the differ- ences in accounting methods described above. Actjust- ments for other differences. such as in rules for depre- ciation. have not been made.
1976
Skr m U.S.$ m 1 Volvo Group 1976 net income.as shown in Consolidated lncome statement
Add: Share of allocations made Actjustments of tax costs Share of net results in associated campanies Valuation of receivables and payables in foreign currency Actjusted net income
63
19912
14288
15
48
3
470 Actjusted net income
per share2 Skr 17.50 U.S.$4.25
1Translated at quoted exchange rate, December 31. 1976. Skr 4.1175 per U.S.$1.00.
2Based on average number of shares outstanding during the year
19
-
•
l •
l
~)
Operating Statistics, Consolidated
Proctucts
Plodudlon 1967- i976 Pny:.luctto<1 by plant and o..~ntry 1 007·-19 715
SaitlS
1;}67-1976~~.c6!U!nrna~ 100'/ 1876 Purchasu19 1967-19/6 Nurr .bcoli· of tW"•1Pi'o'Yf.'EIS
1 9f5 7- 19 7 6
SalAA%, W8gQS andsera
beruafJts 1007-1976 Wolid pwductol of~ 1967-1976OPERATING STATISTICS. CONSOUDATED
Products
The Volvo Group manufactures a range of products in the automotive field comprising cars. trucks and buses.
marine and industrial engines. construction equipment.
farm and forest machinery. aircraft engines and hydraul- ic machines. The Group also manufactures and markets recreatiÖnal products.
T otal sales by product group (incl. parts) in 1972- 1976 were as follows (percent):
1972 1973 1974 1975 1976
Cars 59 57 53 55 54
Trucks'and buses 21 22 24 24 26
Marine and industrial
engines 5 5 5 4 5
Coostruction equipmenl
farm and forest maehinarv 11 11 12 12 11
Aircraft engines. etc 3 3 3 3 2
Recreational products 1 1 1
Other products (develop- ment commissions. tools.
etc.! 2 2
C ars
The Volvo 240 Series - In August 1974. the Group introduced a new generation of cars. the 240 series.
The principal models of the 240 series are the 242 L.
the basic two door model: the 242 DL. a two door saloon; the 244 DL. a four door saloon; the 244 GL. a four door saloon with fuel injes:;tion. a more luxurious interior and various optional features. and the 245 L and 245 DL. which are estate cars. Nearly all the models of the 240 series are powered by a 2.1 liter. 4 cylinder engine.
The Volvo 260 Series - This series includes the follow- ing models: The Volvo 264 DL. GL and GLE. four door saloons; the 265 DL and GL. estate cars; the 262 C a coupe model and the 264 TE. a limousine. The cars of this series are the most luxurious of the Volvo range and are powered by a 2.7 liter. V-6 aluminium engine.
The Volvo 343 - The Volvo 343 is a medium-sized ear
In 1976 the Group pröduced 296.800 cars of which 222.500 were of the 240 and 260 series and 74.300 cars were Volvo 343's and Volvo 66's.
Trucks
The Group sells a wide range of trucks. Early in 1975 a new series of medium-sized forward control (cab-over- engine) trucks was introduced. These trucks. designed for short distance distribution work. are produced in a new factory in Ghent. Belgium. The forward control series also includes the medium-heavy F 85 and F 86 series. and the larger F 88 and F 89 series for Iong distance haulage and heavy duty transportation. The conventional N series. introduced in 1973. consists of a basic design available in three different models: the medium-heavy N 7 and the heavy duty N 10 and N 12. The Group also markets a variety of special pur- pose vehicles. the most recent being a light cross- country vehicle designed for both military and civilian purposes.
In 1976 the Group produced 25.300 units. of which 19.900 were in the over 16-ton Gross Vehicle Weight ("GVVI/") class. as weil as 2.200 cross-country vehicles.
Buses and Public transport systems
The Company first sold buses in 1932 and is one of the major European bus chassis manufacturers. Volvo buses are sold as complete chassis in the form of frame. engine. transmission. drive train and driving con- trols. In 1976 a total of 2.950 chassis were sold. Since requirements vary in different markets. bodies are sup- plied by loeal body manufacturers to whom the C::>m- pany provides technical advice and with whom it parti- cipates. if requested. in the body designs.
A bus plant in Borås. near Gothenburg. is under con- struetian and productian will be transferred there from Gothenburg at the end of 1977.
The Company is evaluating town and city traffic pat- terns and creating and marketing public transport systems to serve these patterns efficiently. Experimental public trc..nsport systems are in operation in several
marine inboard engines are used in many different types of craft. including ferries and cargo. fishing and leisure boats. Through the acquisition in 1974 of the outboard engine division of Monark-Cresent AB. Volvo Penta is now Europe's largest producer of outboard engines.
In addition. Volvo Penta converts diesel engines. manu- factured by the Group. for use in excavating machines.
dumpers. road graders and fork lift trucks. and in power units and generator sets for irrigation purposes.
Construction equipment. farm and forest rnachinerv Volvo BM AB is one of the leading Western European manufacturers of construction equipment and forest rnachinerv and is the largest manufacturer of farm tractors in the Nordie area.
The construction equipment manufac;tured by Volvo BM AB includes wheel loaders. dumpers. road graders.
mobile cranes and excavators. In addition to tractors Volvo BM AB farm rnachinerv includes combine har- vesters. Forest machinery includes machines for felling.
de-limbing. cutting and transporting timber.
Although Sweden is still its most important market.
Volvo BM AB has been successful in implementing a policy of increasing the proportion of its sales in export m arkets.
Aircraft engines. hydrau/fe machines. etc.
Volvo Flygmotor AB has manufactured aircraft engines for more than forty years and currently produces en- gines for the "37 Viggen" aircraft of the Swedish Air Force. The subsidiary is invalved in research and devel- opment of aircraft and rocket engines and also carries out maintenance work on jet engines for civilian airlines.
Volvo Flygmotor AB manufactures several products for the civilian market. many of which are used in Volvo vehicles. The most important of these products are hydraulic pumps and motors.
Recreational products
OPERA TING STATISTICS. CONSOLIDATEO
1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
Volvo productian 1967-1976, total figuros
Cars 148.700 170.700
181.700 205.000 214.400 234. 000 252.000 234.200 287.000 296.
800Trucks 10.400
11.600
14.50016.300
15.400 17.00018.800 21.100 25.400 25. 300
Buses 1.000
800 1.000 1.100
1.500 1.500
1.8002.200 3.100
2.900Tractors
9.200 8.400 9.600 8.500 6.700 6
.900 6.900 6.900 7.300 9.500
Combines
2.400
1.9002.200
1.9001.700 1.500
1.4001.500
1.6002. 000
Construction equipment and forest machinery
4.300 3.700
4.400 4.3004.300 3.900 4.800 5.900 6.000 5.200
Small boats
9.600
10.00010. 300
Volvo productian (assombly) by plant and country 1967-1976
C ars
Volvo T orslanda Plant. Sweden l 28.200 143.800
l 51.000
168.500 176.000 180.200 181.200 157.200 138.300 138.800
Volvo Kalmar Plant Sweden
9.100 19.400 22.100
Volvo Europa NV. Belgium 12.900
16.200
17.80023.000 27.000 37.000 50.600
49.60045.900
45.400Volvo Bom Plant. The Netherlands
61.600 74. 300
Swedish Motor Assemblies Sdn. Bhd .. Malaysia 500
1.300
1.000900
1.2001.400
1.300 1.500
600500
Thai Swedish Assemblies Co. Ltd .. Thailand 500
Volvo Australia Pty. Ltd .. Australia
1.300 4,300
5.4005.700 6.500 5. 000
Volvo Canada Ltd .. Canada 4.500
5.500 6.700
7.5008.200 9.600
11.000 10.100 13.500 9.500
Assembly by importers on other markets
3.500 5.000 6.300 6.600
2.9003.700 2.500 2.200 1.200 700
Trucks
Volvo Lundby Plant. Sweden 8.100
8.900
11.70012.300
11.200 11.300 12.900 14.400
15.100 12.200Volvo Europa NV. Belgium 1.300 1.400
1.600
2.3002.200 2.
5002.800 2.900 4.700
7.400Ailsa Trucks Ltd .. Great Britain 10 170
270
Zamyad Co Ltd .. Iran 250 380
290
330 260380 450 800
1.700 1.800
Swedish Motor Assemblies Sdn. Bhd .. Malaysia 130 70 20 40 140 120
30
Volvo Australia Pty. Ltd .. Australia
10
550690 830 930 860
Volvo del Peru S.A.. Peru 60
50 60
130390 690 770
1.000 1.530 1.300Assembly by importers on other markets 700
950 960
1.200 1.200 1.500,1.100
1.0001.100
1.400Buses
Volvo Lundby Plant Sweden
720 560 870 780
1.1001.100
1.200 1.1001.900
1.500Volvo Europa NV. Belgium
10
1030
50120
Ailsa Trucks Ltd . Great Britain 100 170
Volvo Australia Pty. Ltd .. Australia 10 10
70 90 250
Volvo del Peru S.A.. Peru 10 60
80
180 510330 350
Assembly by importers on other markets
250 210 320
3002
70380 560 670
680Nate.
The total assembly f1gures in table 2 can differ from the productian figures in table 1 due to the fact that there is same delay in the assembly of Completely Knocked Down shipments !transport and assembly time)
23
