Volvo 1997 Annual Report Download - page 47

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45
For practical reasons, most of the associated companies are included in the Volvo
Group accounts with a certain time lag, normally one quarter.
1 In December 1997 Volvo do Brasil acquired the outstanding shares of
Transbanco Banco de Investimento SA and the company’s balance sheet
was consolidated in the Volvo Group as of December 31, 1997.
2 In April 1995 AB Volvo acquired the outstanding shares of Volvo Construction
Equipment Corporation. The company is reported as a subsidiary as of June
30, 1995.
3 Pharmacia was reported as an associated company up to and including
September 30, 1995. In October 1995 the shareholding in Pharmacia was
exchanged for shares in Pharmacia & Upjohn, Inc., following which the
holding was reported at cost.
■
7Income from investm ents in associated com panies
Volvo’s share income of associated companies before taxes, after deduction for amortization of excess value in appropriate cases, was a loss of
116 (gain 290; 1,402). The gain on sale of participations in associated companies amounted to 3,045 (24; 717).
Income (loss) Dividends received
1995 1996 1997 1995 1996 1997
Netherlands Car BV (635) (334) (128) — – —
AutoNova AB – (84) (45) – – —
ABB Olofström Automation AB — — 25 — — —
Bilia AB (former AB Catena) 80 11 122 12 23 32
AVC Intressenter AB 71 381 23 — – —
Sales-financing companies
AB Volvofinans 65 66 82 2 4 6
VOCS Finance Ltd. 36 31 47 — – 84
Transbanco Banco de Investimento SA19 (133) (278) — – —
Other companies 79 47 36 38 4 23
Holdings no longer reported as equity method investments
Volvo Construction Equipment NV (former VMEGroup NV) 2478 — — 96 — —
Pharmacia AB 31,155 — — 181 — —
Pripps Ringnes AB — 263 — — 88 —
Other companies 64 42 — 75 — —
Subtotal 1,402 290 (116) 404 119 145
Gain on sale of shares in associated companies
Pripps Ringnes AB — — 3,027
Partena AB 707 — —
Other companies 10 24 18
Subtotal 717 24 3,045
Total income from investments in associated companies 2,119 314 2,929
■
8Income from other investm ents
1995 1996 1997
Dividends received
Pharmacia & Upjohn, Inc. 126 327 165
SAS Sverige AB 8 91 10
Renault SA 142 124 —
Borgtornet — 165 —
Other 69 73 20
Subtotal 345 780 195
Gain on sales of securities
Renault SA — — 783
SAS Sverige AB — — 221
Pharmacia & Upjohn, Inc. — 7,766 —
Investment AB Bure — 394 —
NordicTel Holdings AB 176 — —
Cultor AB 166 — —
Other 101 67 (31)1
Subtotal 443 8,227 973
Total 788 9,007 1,168
1 Including a write-down of shares.
■
9Other financial income and expense
Other financial income and expense include exchange gains
amounting to 206 (loss: 13; loss 214).