Volvo: shares up, despite heavy provisions
(CercleFinance.com) - The Volvo B share is up 1.
7% in Stockholm today, despite the group announcing on Thursday evening that it has booked a provision of seven billion Swedish kronor (about 700 million euros) in its accounts for the fourth quarter of 2018.
The truck maker explains this exceptional charge by the estimated costs needed deal with an issue regarding a pollution emission control component, which component that could worsen faster than expected.
The Swedish group states that this provision will impact its operating result over the last three months of 2018, while the negative impact on cash flow will start in 2019, before gradually increasing in the next few years.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
7% in Stockholm today, despite the group announcing on Thursday evening that it has booked a provision of seven billion Swedish kronor (about 700 million euros) in its accounts for the fourth quarter of 2018.
The truck maker explains this exceptional charge by the estimated costs needed deal with an issue regarding a pollution emission control component, which component that could worsen faster than expected.
The Swedish group states that this provision will impact its operating result over the last three months of 2018, while the negative impact on cash flow will start in 2019, before gradually increasing in the next few years.
Copyright (c) 2019 CercleFinance.com. All rights reserved.