Change in Volvo Financial Reporting Structure.STOCKHOLM, Sweden -- Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and operating result of the business units and Volvo Real Estate (Nasdaq:VOLV) (STO STO Store (calculator function) STO Société de Transport de l'Outaouais (French) STO Strategic Technology Office (DARPA) STO Security Through Obscurity STO Service to Others :VOLVA) (STO:VOLVB) will be allocated to the Volvo business areas as from January 1, 2007. As of the same date, Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. will be consolidated according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the purchase method. These changes are implemented in order to further increase the transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. and to more clearly present the profitability of the respective product areas as well as the customer finance operations The execution of the joint finance mission to provide financial advice and guidance, support of the procurement process, providing pay support, and providing disbursing support.See also financial management. . The Volvo Group's operations are organized in business areas and a number of business units with Group-wide responsibility for engines, product development, sourcing, IT, logistics and parts. Substantial synergies are created within the Group based on global coordination and competitive offerings. In Volvo's external financial reporting, net sales and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. are reported for each product-related business area. As from January 1, 2007, the benefits from the synergies created in the business units are transferred back to the product-related business areas as the financial results from all business units are allocated to the business areas. The allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as is based on the respective business area's use of the services of the business units. Previous years only the financial result from the business units Volvo Powertrain and Volvo Parts have been allocated to the business areas whereas the remaining business units have been included in the item Other. After allocation the item Other will only include the financial result generated from corporate functions. Quarterly and yearly financial results 2006 by business area have been recalculated according to the allocation and are presented in an appendix to this press release. As from January 1, 2007, the responsibility for the group treasury function and the real estates will be moved from Financial Services. The group treasury function will be reported under corporate functions. The real estates of the group, Volvo Real Estate, will be reported within the industrial and commercial operations and the financial result, previously reported in Financial Services, will be allocated to the business areas. As from January 1, 2007, Financial Services is consolidated according to the purchase method. Previously, Financial Services has been consolidated according to the equity method. The appendix includes balance sheets presenting the Volvo group as at December 31, 2006, including the transfer of Volvo Real Estate and the consolidation of Financial Services according to the purchase method. As a consequence, net financial position changes from SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 24.7 billion to SEK 22.4 billion and net debt ratio changes from 28.3 percent to 28.6 percent within Industrial & Commercial. April 17, 2007 Enclosure enclosure (inclosure) n. land bounded by a fence, wall, hedge, ditch or other physical evidence of boundary. Unfortunately, too often these creations are not included among the actual legally-described boundaries and cause legal problems. ENCLOSURE. The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 83,000 people, has production facilities in 18 countries and sells their products in more than 180 markets. Annual sales of the Volvo Group amount to about 27 billion euro. The Volvo Group is a publicly-held company headquartered in Goteborg, Sweden. Volvo shares are listed on the Stockholm stock exchange The Stockholm Stock Exchange (Swedish: Stockholmsbörsen) is a stock exchange located in Stockholm, Sweden. Founded in 1863 [1] it is the primary securities exchange of the Nordic Countries. and on NASDAQ in the US. http://wpy.waymaker.net/client/waymaker1/WOLReleaseFile.aspx?id =426648&fn=wkr0001.pdf http://wpy.waymaker.net/client/waymaker1/WOLReleaseFile.aspx?id =426648&fn=wkr0003.pdf (Due to their lengths, the above URLs may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) This information was brought to you by Cision http://newsroom.cision.com |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion