Volvo 2014 Annual Report Download - page 71

On May 30, 2014 the previously
announced acquisition of Terex’s
hauler business was completed.
based on the same principles as the program adopted by the
Annual General Meeting held in 2011, however with a certain
adjustment of the performance targets.
Volvo Construction Equipment fi nalized acquisition of
hauler business from Terex
On May 30, 2014 the acquisition of Terex’s hauler business was
completed. The purchase consideration amounted to USD 160 M
(approx. SEK 1 billion) on a cash and debt-free basis. The deal
includes the main production facility in Motherwell, Scotland and
two product ranges that offer both rigid and articulated haulers. It
also includes the distribution of haulers in the U.S. as well as a
25.2% holding in Inner Mongolia North Hauler Joint Stock Co.
(NHL), which manufactures and sells rigid haulers under the
Terex brand in China. In 2013, the acquired businesses (excluding
NHL) had net sales of approximately USD 228 M (approx. SEK
1.5 billion) and an operating income of approximately USD 9.5 M
(approx. SEK 60 M).
Volvo Group signed EUR 3.5 billion revolving credit
facilities
On July 1, the Volvo Group through its subsidiary Volvo Treasury AB
signed new credit facilities of EUR 3.5 billion. The new facilities
replace the company’s existing EUR 2,000 M and EUR 1,200 M
revolving credit facilities signed in 2011 and 2012. The new facili-
ties consist of one facility amounting to EUR 2,300 M with a tenor
of fi ve years and a second one amounting to EUR 1,200 M with a
tenor of three years. Both have one plus one year extension options.
Volvo Group ordered by US Court to pay penalties in
engine emission case
On July 19, 2014 the Volvo Group disclosed that the U.S. Court of
Appeals for the District of Columbia Circuit had ruled that the
Volvo Group should pay penalties and interest of approximately
SEK 508 M following a dispute between the Volvo Group and the
U.S. Environmental Protection Agency (EPA) regarding emission
compliance of diesel engines. The Court of Appeals affi rmed a
District Court’s ruling that model year 2005 Volvo Penta engines
violated the provisions of a Consent Decree. This had a negative
impact on the Group’s operating income of SEK 422 M in the third
quarter of 2014 in the segment Group functions and other.
Further cost-reductions and changed format
for external follow-up
On October 24, it was announced that the Volvo Group increases
its ambition in the structural cost-reduction efforts and there will
be increased expected restructuring charges in the Strategic
Program 2013–2015. At the same time, the format for external
follow-up was changed. Please see page 24 for more information.
THE SECOND QUARTER
02/04/2014 Award for technology behind “The Epic Split” 02/04/2014 Annual General Meeting of AB Volvo 07/04/2014 Volvo Group University opens today
11/04/2014 Invitation to press and analyst conference in Stockholm 15/04/2014 Assar Gabrielsson Award for research that may provide better treatment of glandular
cancer 15/04/2014 Volvo Group completes real estate transaction 25/04/2014 Volvo Group – the fi rst quarter 2014 30/04/2014 New number of votes in AB Volvo
30/04/2014 Annual Report of Volvo Treasury AB (publ) 19/05/2014 The Volvo Group studies potential to test electric roads in a city 21/05/2014 Truck deliveries
in April 2014 30/05/2014 New number of votes in AB Volvo 02/06/2014 Volvo Construction Equipment fi nalizes the acquisition of the hauler business from Terex
17/06/2014 Unique gearbox for heavy vehicles on the Volvo FH 18/06/2014 Truck deliveries in May 2014 27/06/2014 Scott Rafkin new President of Volvo Financial
Services 30/06/2014 New number of votes in AB Volvo 30/06/2014 Logistics agreement to reduce environmental impact
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BOARD OF DIRECTORS’ REPORT 2014 GROUP PERFORMANCE SIGNIFICANT EVENTS
67