The company’s operating margin was 7.8% as its operating income was $712 million, which excluded a provision set aside related to a European Union competition investigation, which the company settled.
“In the second quarter we were able to continue the improvement of our underlying profitability despite declining sales, thanks to positive cost development. Sales decreased by 7% to SEK 78.9 billion. Despite this, the underlying operating income increased to SEK 6.1 billion, corresponding to an operating margin of 7.8%,” said Martin Lundstedt, president and CEO of The Volvo Group, in a press release.
The operating margin also included $92 million in restructuring charges and $248 million in capital gains from the sale of shares in Eicher Motors Limited in the second quarter of 2015.