Volvo 1998 Annual Report Download - page 61

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to SEK 0.2 billion, which is being amortized over 20
years, arose in connection with the acquisition. In 1998
BTM Capital, a wholly owned subisdiary of Bank of
Tokyo-Mitsubishi Ltd, aquired 5% in AGES, which meant
a decrease to 57% regarding Volvo Aero’s ownership.
Volvo Car Finance Holding AB
At year-end 1995 Volvo Car Corporation established a
wholly owned subsidiary, Volvo Car Finance Holding AB,
to coordinate the sales-financing operations within Volvo
Car Corporation. The company is the parent company of
some of Volvo Cars’ sales-financing and insurance com-
panies in Europe and Australia.
Volvo Rahoitus Suomi Oy (former Devoco Oy)
In 1996 Volvo Car Corporation acquired 50% of the share
capital of Volvo Rahoitus Oy, following which Volvo Car
Corporation’s holding amounts to 75%. The remaining
25% is held by Volvo Truck Finance Holding. The com-
pany finances transactions involving both cars and trucks
in Finland.
Volvo India PVT Ltd
In 1996, Volvo India PVT Ltd was formed, a wholly owned
company by Volvo Truck Corporation. In June 1998 a
plant was opened and will eventually have a production
capacity of 4,000 trucks a year.
Volvo Truck Latvia S/A
Volvo Truck Latvia S/A was formed in 1996. The com-
pany, which is wholly owned by Volvo Truck Corporation,
markets trucks in Latvia.
Volvo Pakistan Ltd
Volvo Pakistan Ltd., in which Volvo Truck Corporation
holds a 51% interest, was formed in 1996. The company
manufactures trucks and is responsible for sales in
Pakistan.
Volvo Austria GmbH
In November 1996 Volvo Bus Corporation acquired the
remaining 25% shareholding in Steyr Bus GmbH from
Steyr-Daimler-Puch Ag. The company, whose name was
changed to Volvo Austria GmbH on January 1, 1997, is
owned 100% by Volvo Bus Corporation. Effective in
January 1997, the new distribution structure in Austria
was coordinated in Volvo Austria. As part of the new
structure, Volvo took over Denzel’s importer operations in
Austria and is integrating them with its European marke-
ting and distribution network for cars, trucks and buses.
Fortos Fastigheter AB
In 1996 all of the shares of Fortos Fastigheter AB were
sold to Fabege AB. The sale resulted in a capital gain of
SEK 39 million. In addition, Volvo received newly issued
Fabege shares.
Swedish Match AB
As approved at Volvo’s Annual General Meeting on April
24, 1996, all the shares of the wholly owned subsidiary
Swedish Match AB were distributed to Volvo’s share-
holders in May 1996.
Net sales per business and market area are shown in tables on page 12.
Other operating expenses include losses on forward and
options contracts of 640 (1,180; gain of 1,100).
Amortization of goodwill and provision for bonuses to
employees amounting to 338 (196; 195) and 160 (231;
300), respectively, are included in Other operating
expenses.
Operating income in 1998 was charged with items
affecting comparability amounting to 2,331 (–; –) pertain-
ing to the approved restructuring aimed at adapting the
industrial structure and the distribution and market
organizations. Approximately 1,300 of the total amount
is attributable to contractual pensions and excess person-
nel, approximately 600 to writedowns of assets, 348 in
1996 1997 1998
Intangible assets 266 253 574
Property, plant and equipment 4,247 4,731 5,753
Assets under operating leases 838 1,812 3,299
Total 5,351 6,796 9,626
Operating income excluding items affecting comparability
by business area is shown in a table on page 13.
Depreciation is included in operating income and is spe-
cified by type of asset as shown below:
capital gain on the sale of Trucks’ rear-axle plant in
Lindesberg and the remainder, approximately 800, to
other restructuring costs. Cars accounted for 681 of the
costs, Trucks for 46, Buses 422, Construction Equipment
910, Marine and Industrial Engines 158 and other op-
erations for 114.
Net sales Note 3
Other operating income and expenses Note 4
Items affecting comparability Note 5
Operating income Note 6