Volvo Writes Down its Holding in Blue Bird.STOCKHOLM, Sweden -- As previously announced in the interim report for the third quarter of 2005, Volvo has been considering a possible write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the holding in Blue Bird, the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. school bus manufacturer, for some time. AB Volvo has now decided to write down this holding by USD USD In currencies, this is the abbreviation for the U.S. Dollar. 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. 71 M, about 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. 550 M. The write-down has no cash effect. Volvo has owned 42.5% of a US-based company that owns Blue Bird since the autumn of 2004. The company, Peach County Holdings Inc, was formed in conjunction with Henlys' insolvency insolvency Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet which was previously the owner of Blue Bird. The owership of Blue Bird was transferred to the newly formed US based company Peach County Holdings. Volvo, a consortium of banks, a British pension fund and Blue Bird's management became the owners of the newly formed holding company. Since it was spun out of Henlys, Blue Bird has developed less favourably. Together with the other shareholders of Peach County Holdings Inc, Volvo has investigated various possibilities for strengthening Peach County Holdings Inc, but Volvo has decided not to pursue such possibilities itself. As a result, Volvo will now recognize an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss for the fourth quarter of 2005 totalling USD 71 M, about SEK 550 M. The impairment loss comprises two parts: one is Volvo's share in the earnings of Peach for the fourth quarter of 2005 and the other is on the book value of the holding in the company. The write-down has no cash effect. January 13, 2006 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 81,000 people, has production facilities in 25 countries and sells their products in more than 185 markets. Annual sales of the Volvo Group amount to 20 billion euro. The Volvo Group is a publicly-held company headquartered in Goteborg, Sweden. Volvo shares are listed on the stock exchanges in Stockholm and on NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on in the US. This information was brought to you by Waymaker http://www.waymaker.net |
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