Volvo 2006 Annual Report Download - page 5

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The Volvo Group 2006
Additional improvements in profi tability
Record number of product innovations
Acquisitions to strengthen market position in Asia
Strong sales growth. Net sales up 7% to SEK 248,135 M (231,191).
Continuing favorable earnings trend. Earnings for the year rose 25% to
SEK 16,318 M (13,108) and the return on shareholders’ equity increased
to 19.6% (17.8).
Major investments in R&D programs for the next generation of
engines and products to ensure future competitiveness.
Consolidation of the Group’s presence in Asia as a result of the purchase
of shares in Nissan Diesel and an agreement to purchase shares in
Lingong, a Chinese manufacturer of construction equipment.
Earnings per share rose by 25% to SEK 40.20 (32.22).
Proposed dividend of SEK 25.00 per share and an extraordinary
payment through a 6:1 share split in which the sixth share will be
redeemed by AB Volvo for an amount of SEK 25 per share.
Key ratios 2004 2005 2006
Net sales, SEK M 202,171 231,191 248,135
Operating income, M1 13,859 18,153 22,111
Adjustment of goodwill – – (1,712)
Revaluation of shares 820 – –
Operating income, SEK M 14,679 18,153 20,399
Operating margin, % 7.3 7.9 8.2
Income after financial items, SEK M 13,036 18,016 20,299
Income for the period, SEK M 9,907 13,108 16,318
Earnings per share, SEK 23.58 32.22 40.20
Dividend per share, SEK 12.50 16.75 25.00
2
Extraordinary payment per share, SEK – – 25.00
3
Return on shareholders’ equity, % 13.9 17.8 19.6
1 Excluding revaluation of shares in Scania AB and Henlys Group Plc in 2004 and excluding adjustment of goodwill in 2006.
2 Proposed dividend 2006.
3 According to the Board’s proposal.
A global group 2006 1