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Six months ended June 30, 2010

Volvo Aero to sell its US service business

In July it was announced that Volvo Aero had signed an agreement to sell its US subsidiary Volvo Aero Services. The sale had a negative impact of SEK 223 M on the Volvo Group’s operating income during the second quarter. The sale is among other things contingent on customary approvals being obtained and completion is expected to take place in the third quarter of 2010, at which point it is forecast to have a positive effect of about SEK 400 M on the Group’s net financial debt. The sale of Volvo Aero Services is due to Volvo Aero’s strategy of focusing on its core operations of developing and manufacturing components for aircraft engines, combined with the goal of reducing the company’s tied-up capital.  
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