Volvo Trucks acquires JMC Heavy Duty Vehicle for ~SEK1.1B

  • To start production of the new heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks in Taiyuan for customers in China by the end of 2022, Volvo Trucks (OTCPK:VOLAF) has acquired JMC Heavy Duty Vehicle Co., Ltd., a subsidiary of Jiangling Motors Co., Ltd. for RMB 0.8B (~SEK 1.1B).
  • 'We are committed to shaping the future of sustainable transport solutions. With our long-standing presence in China, we are growing our sales, and we are expanding our strong network of sales and service points together with our private dealer partners. Over the last couple of years, we have seen a fast development of the logistics markets and an increasing demand for our premium trucks and services. To meet the demand from Chinese transport operators, the time is right for us to establish a regional value chain with our own heavy-duty truck manufacturing in China," says Roger Alm, President Volvo Trucks.
  • In few years, the plant will have the capacity to produce 15,000 Volvo trucks per year with the potential to increase the capacity further.

    For this year Volvo 's revenue will be around 373.02 billion SEK. This is according to the average of the analysts' estimates. This is hugely more than 2021's revenue of 338.45 billion SEK.

    Historical revenues and results Volvo plus estimates 2021


    The analysts expect for 2021 a net profit of 31.94 billion SEK. For this year the majority of the analysts, consulted by press agency Thomson Reuters, expects a profit per share of 15.43 SEK. So the price/earnings-ratio equals 12.53.

    Huge dividend Volvo

    For this year the analysts expect a dividend of 6.8 SEK per share. Volvo 's dividend yield thus equals 3.52 percent. The average dividend yield of the automobile producers is a relatively high 2.78 percent.

    Based on the current number of outstanding shares Volvo 's market capitalization 304.89 billion SEK. 27

    At 14.17 the stock trades 0.66 percent higher at 193.3 SEK.

    Historical stock prices Volvo

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