Volvo Group financial position

Net financial debt, excluding provisions for post-employment benefits, in the Industrial Operations amounted to SEK 31.1 billion at September 30, 2013, an increase of SEK 4.4 billion compared to the end of the second quarter, and equal to 46.3% of shareholders’ equity. Including provision for post-employment benefits, the Industrial Operations net debt amounted to SEK 42.8 billion, which is equal to 63.6% of shareholders’ equity. The increase in net financial debt including provisions for post-employment benefits is mainly an effect of negative cash flow of SEK 5.3 billion partly offset by positive currency effects of SEK 1.1 billion and re-measurement of defined benefit plans of SEK 2.2 billion.

The Volvo Group’s liquid funds, i.e. cash and cash equivalents and marketable securities combined, amounted to SEK 26.2 billion at September 30, 2013. In addition to this, granted but unutilized credit facilities amounted to SEK 30.5 billion.

During the third quarter, currency movements decreased the Volvo Group’s total assets by SEK 8.6 billion related to revaluation of assets in foreign subsidiaries.

The equity ratio in the Volvo Group amounted to 22.4% on September 30, 2013 compared to 22.7% at year-end 2012 after restatement for the amendment to IAS 19 Employee benefits (For more information about the restatement please refer to note 31 in the 2012 annual report). On the same date, the equity ratio in the Industrial Operations amounted to 26.7% (27.0).

At September 30, 2013 shareholder’s equity in the Volvo Group amounted to SEK 76.0 billion.

Number of employees
On September 30, 2013 the Volvo Group had 95,428 regular employees and 17,216 temporary employees and consultants, compared with 96,137 regular employees and 13,452 temporary employees and consultants at year-end 2012. The increase in temporary employees and consultants refers to blue collar employees and is related to the higher production levels compared to the end of last year.