Latest news with #SDLG
Time of India
9 hours ago
- Business
- Time of India
Volvo sells stake in China's SDLG in strategic revamp
HighlightsVolvo Group announced the sale of its 70% stake in Shandong Lingong Construction Machinery Company to a fund controlled by Lingong Group for 8 billion Swedish crowns ($837 million). Volvo Group will acquire the business operations of engineering consultancy Swecon in Sweden, Germany, and the Baltics for 7 billion crowns ($731 million), enhancing its control over its European construction equipment business. The decision to exit Shandong Lingong Construction Machinery reflects the challenges in China's declining construction market, while the acquisition of Swecon allows Volvo to focus on premium brands amid changing consumer demand and trade tensions. Volvo Group on Tuesday said it would sell its 70% stake in China's Shandong Lingong Construction Machinery Co ( SDLG ) and buy its European construction equipment supplier Swecon as it looks to refocus on core brands. Volvo said that its construction equipment (CE) unit would sell the stake to a fund controlled by minority partner Lingong Group for 8 billion Swedish crowns ($837 million). In a separate statement Volvo said that it would buy engineering consultancy Swecon's business operations in Sweden, Germany and the Baltics for 7 billion crowns ($731 million). Volvo is focusing on premium and more customer-focused brands, tightening control over its European business while stepping back from China's mid-market while the industry grapples with changing consumer demand and trade tensions . "With increasing competition, the need to transform to new technologies as well as strengthening the interaction with customers, we need to re-focus," Melker Jernberg, head of Volvo CE, said in a statement on the Chinese transaction. Volvo shares were up 2.3% in mid-morning trade. Volvo CE accounted for 17% of group revenues in 2024, while SDLG contributed around 2%, the company said. With Swecon under full ownership, Volvo will be able to manage the majority of its European construction equipment business directly, said Bernstein in a note to clients. Analysts said the exit from SDLG reflects the broader challenges of operating in China's slumping construction market, while the Swecon deal boosts Volvo's control in Europe. Mounting debt from Chinese property developers has dragged down real estate prices and triggered a construction downturn, hitting demand for heavy machinery .
Yahoo
a day ago
- Automotive
- Yahoo
Volvo CE to divest SDLG stake to Lingong Group fund
Volvo Construction Equipment (Volvo CE) has agreed to sell its 70% stake in Shandong Lingong Construction Machinery Co (SDLG) to a fund predominantly owned by Lingong Group (LGG) for Skr8bn ($826m). The deal is expected to be completed in the second half (H2) of 2025, pending regulatory approvals and other conditions. It is anticipated to positively impact Volvo CE's operating income by Skr1bn at closing, though this is subject to currency fluctuations. However, it will also result in a negative tax impact of Skr1.6bn, similarly affected by exchange rate changes. The potential positive effect on operating income will be excluded from adjusted operating income. In 2024, SDLG contributed approximately 2% to Volvo Group's turnover, with a negligible effect on the group's operating income. Volvo CE acquired its majority stake in SDLG in 2006, with LGG as a minority shareholder, to gain access to China's domestic construction equipment market. 'The SDLG collaboration has been successful, but for strategic reasons Volvo and LGG now believe it would be mutually beneficial to pursue independent business strategies,' Volvo CE stated. Post-transaction, Volvo CE will focus on offering Volvo-branded products and services to targeted customer segments in China such as mining, quarry and aggregates, and heavy infrastructure. The company aims to provide tailored solutions to meet specific customer needs while developing a sustainable distribution strategy in China's competitive market. China will continue to serve as a key production and development hub for both the domestic and export markets, leveraging Volvo CE's excavator production facility in Shanghai, operational since 2002, and recently announced new production lines. Volvo CE also plans to enhance its utilisation of China's supplier ecosystem, maintaining the country's role as a critical part of its global value chain. "Volvo CE to divest SDLG stake to Lingong Group fund" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Volvo Construction Equipment refocuses its presence in China - divests its shares in SDLG
GOTHENBURG, Sweden, June 24, 2025 /PRNewswire/ -- Volvo Construction Equipment (Volvo CE) has signed a contract to sell its ownership in China-based SDLG (Shandong Lingong Construction Machinery Co) to a fund predominantly owned by the Lingong Group (LGG) for SEK 8 billion (6 billion RMB.) The transaction is expected to have a positive effect of SEK 1 billion on operating income at the time of closing, subject to currency fluctuations. Going forward, Volvo CE will be targeting focused customer segments in China and enhance its utilization of the Chinese supplier eco system. Volvo CE will: Sell its entire stake of 70% of the shares in SDLG to a fund predominantly owned by the SDLG minority owner LGG Focus on offering Volvo branded premium products and services to focused customer segments in China Utilize its system in China as a production and development center serving both the domestic and export markets In 2006, Volvo CE acquired a majority stake in SDLG, with LGG as a minority shareholder. The strategic investment gave Volvo CE access to the important domestic Chinese construction equipment market. The SDLG collaboration has been successful, but for strategic reasons Volvo and LGG now believe it would be mutually beneficial to pursue independent business strategies. Therefore, the parties have agreed that a fund predominantly owned by LGG will take ownership of Volvo's SDLG shares. In 2024, the SDLG revenue contribution was approximately 2% of Volvo Group turnover with an insignificant impact on the Volvo Group's operating income. The transaction is currently estimated to have a positive effect on the segment Construction Equipment's operating income of SEK 1 billion at the time of closing, subject to fluctuations in currency exchange rates up to the time of closing. Closing is expected to occur in the second half of 2025, subject to regulatory approvals and other conditions. The effect will be excluded from adjusted operating income. The transaction is also expected to have a negative tax impact of SEK 1.6 billion, subject to currency fluctuations. Melker Jernberg, Head of Volvo CE, says, "SDLG has served us well since 2006. However, with increasing competition, the need to transform to new technologies as well as strengthening the interaction with customers, we need to re-focus. China remains an important market for us, and we aim to capitalize on our opportunities by focusing on sustainable solutions in targeted segments. We also plan to leverage the excellent industrial system in China." Premium products and services for specific targeted segments Volvo CE will maintain its strategic focus on leading the development of sustainable solutions within the Chinese construction industry, targeting key segments such as mining, quarry & aggregates, and heavy infrastructure. The emphasis will be on providing tailored and comprehensive solutions that address specific customer needs while developing a sustainable distribution roadmap suited to the highly competitive landscape. The operations in China serve as a globally competitive production and development center, catering both domestic and export markets. To leverage the quality and cost advantages present in the competitive industrial environment, Volvo CE has operated an excavator production facility in Shanghai since 2002 and has recently announced the establishment of new production lines. Moving forward, China will remain a crucial component of the value chain and a base for numerous suppliers, both domestic and international. June 24, 2025 This information is information that AB Volvo (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 08:00 CEST on June 24, 2025. Journalists wanting further information, please contact:Claes Eliasson, Head of Media Relations+46 76 553 7229press@ For more information, please visit For frequent updates, follow us on LinkedIn The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm. This information was brought to you by Cision The following files are available for download: Press Release - Volvo Construction Equipment refocuses its presence in China â€" divests its shares in SDLG 2025-volvo-flags View original content: SOURCE AB Volvo Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
01-05-2025
- Business
- Associated Press
SDLG Strengthens Global Strategy with Grand Opening of Indonesian Subsidiary
LINYI, CN / ACCESS Newswire / May 1, 2025 / On April 26, 2025, SDLG officially inaugurated its Indonesian subsidiary- PT. SDLG INDONESIA MACHINERY in Jakarta, advancing the company's strategic global expansion. Mr. Wen Degang, General Manager of SDLG, delivered the keynote address at the event, joined by Mr. Shi Shengyong, Deputy General Manager and General Manager of the Marketing Company, and Mr. Shi Dong, General Manager of the Asia-Pacific Marketing Company. The ceremony welcomed more than 300 distinguished guests, including representatives from major Chinese enterprises in Indonesia, leaders from across the business community, strategic partners, and members of the media. The establishment of SDLG Indonesia, based in ASEAN's largest economy, represents a critical milestone in the company's broader internationalization strategy. Building on 53 Years of Excellence, SDLG Accelerates Southeast Asia Expansion The event commenced with the screening of The Heavy Trust, a documentary celebrating SDLG's 50th anniversary. In his remarks, General Manager Mr. Wen emphasized that over the past 53 years, SDLG has maintained consistent growth through technological innovation. Today, SDLG holds a leading position in China's wheel loader market and ranks among the top three excavator brands nationwide. The company has been recognized with multiple international awards, including the China National Quality Award, ANQ Recognition for Excellence in Quality Practice and EFQM Global Excellence Award-making SDLG the only Chinese construction equipment manufacturer to receive this accolade. These achievements underscore the company's global reputation for quality and reliability. Mr. Wen highlighted the strategic significance of the Indonesian market, noting its annual infrastructure growth rate of over 8% and the strong, growing demand for construction machinery. The launch of SDLG Indonesia signals a new phase of accelerated growth in the Southeast Asian market. During the ceremony, SDLG Indonesia signed cooperation agreements with seven strategic partners, securing purchase intentions for over 1,100 units across its full range of products, including excavators, wheel loaders, and road rollers. The total value of the agreements exceeded RMB 450 million. This substantial commitment underscores the Indonesian market's confidence in SDLG's product performance and further strengthens the company's position in the region. Expanding Presence, Accelerating Growth The establishment of PT. SDLG INDONESIA MACHINERY represents a pivotal step in advancing the company's global strategy. With deliveries of the newly signed orders underway, SDLG's brand visibility and market share in Indonesia are expected to grow significantly, supporting the company's long-term ambitions in Southeast Asia. As the celebration marked a new beginning, SDLG reaffirmed its commitment to delivering reliable, high-quality solutions and building strong, collaborative partnerships in the region. The launch in Indonesia signals not only a strategic market breakthrough but also a new chapter in SDLG's global growth narrative. Media Contact Organization: Shandong Lingong Construction Machinery Co., Ltd. (SDLG) Contact Person Name: Jin Zhang Website: Email: [email protected] City: Linyi City Country: China SOURCE: Shandong Lingong Construction Machinery Co., Ltd. (SDLG) press release
Yahoo
31-01-2025
- Automotive
- Yahoo
Volvo AB (VLVLY) Q4 2024 Earnings Call Highlights: Record Cash Flow Amid Market Challenges
Net Sales: Declined 6% to SEK138 billion, impacted by softer markets and negative FX of SEK1.1 billion. Adjusted Operating Income: SEK14 billion, with a margin of 10.1%. Operating Cash Flow: Record high of SEK24.3 billion for the quarter. Return on Capital Employed: Almost 36% in Industrial Operations. Earnings Per Share: SEK5.28. Total Truck Deliveries: Declined 11% in Q4. Construction Equipment Deliveries: Down 5%, with Volvo down 23% and SDLG up 20%. Service Sales: Flat year-over-year, adjusted for currency, with a 4% increase excluding Arquus divestment. Book-to-Bill Ratio: Positive at 106% for medium and heavy-duty trucks in Q4. Financial Position: SEK86 billion. Dividend Proposal: Ordinary dividend of SEK8 per share and an extra dividend of SEK10.5 per share. Warning! GuruFocus has detected 7 Warning Sign with VLVLY. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Volvo AB (VLVLY) reported a strong operating cash flow of SEK24.3 billion for the fourth quarter, marking an all-time high for the company. The company maintained a solid return on capital employed in Industrial Operations at nearly 36%, indicating strong financial health. Volvo AB (VLVLY) achieved a positive book-to-bill ratio in Q4, with significant order intake improvements across major regions, particularly in North America. The company successfully launched the all-new VNL in North America, which is expected to enhance market share and future growth. Volvo AB (VLVLY) continues to lead in the electrification space, with a 62% increase in orders for fully electric vehicles and machines, driven by Renault Trucks and SDLG machines. Net sales declined by 6% in Q4, impacted by softer markets and lower volumes, along with a negative currency effect of SEK1.1 billion. Group Trucks North America faced specific challenges, including supply chain disruptions due to storm Helen and additional costs related to the VNL ramp-up. Total truck deliveries declined by 11% in Q4, with a notable decrease in heavy-duty deliveries. The Construction Equipment segment experienced a 19% decline in sales, driven by continued declines in Europe and North America. Volvo AB (VLVLY) revised its forecast for the Chinese market, expecting it to move sideways rather than expand, reducing the forecast by 110,000 units. Q: Can you explain the impact of price versus mix on the average sales per truck, and the pricing environment in general? A: Mats Backman, CFO, explained that the mix impact was significant due to light commercial vehicles. There were no year-over-year pricing effects, but prices are being maintained. Martin Lundstedt, CEO, added that the mix effect was primarily due to changes in light commercial vehicle deliveries. Q: What was the impact of the VNL launch and supply chain issues on Q4, and how long will these impacts last? A: Martin Lundstedt stated that the impact was slightly better than in Q3, where it was about 100 basis points. The issues are expected to gradually fade as the ramp-up progresses. Q: With several quarters of book-to-bill below 1 now turning positive, do you expect any unusual seasonality in 2025? A: Martin Lundstedt noted that the order intake is encouraging, and they are ready for a gradual adjustment upwards. Mats Backman added that the company has a good starting point with lower inventories, which should help manage any seasonality. Q: How do you see the potential for prebuy in the second half of 2025 due to EPA regulations, and how will you position your pricing? A: Martin Lundstedt mentioned that while there is a psychological effect of new regulations, they hope for minimal prebuy to maintain market alignment with economic activities. They remain positive about the market's return. Q: Can you comment on the key actions to improve the gross margin in the Truck division in 2025, and any updates on the Mexico ramp-up plan? A: Martin Lundstedt highlighted that the gross margin was well managed, with specific North American issues gradually fading. The Mexico ramp-up is proceeding according to plan, supporting a strong position in North America. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
