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VOLVO

Volvo Cars expects to end year positively

Volvo Cars continues to guide for a full-year positive result after announcing it has achieved an operating profit in the third quarter.

Published: 29 October 2010 14:24 CEST
Volvo Cars expects to end year positively
Volvo President and CEO Stefan Jacoby at his appointment on August 16

The company said that sales volume grew 12.5 percent to 272,555 retail sales units for the year to date and attributed the growth to its most complete product portfolio ever and market strategies that delivered strong sales in all regions.

“This gives us a good platform in our aim for a full year positive result. It is the third consecutive quarter that Volvo Cars has achieved a positive result, which is very encouraging for the whole company,” Volvo Cars President and CEO Stefan Jacoby said in a statement.

Volvo Cars will not disclose profit details until its full-year earnings report, the company added.

“Q3 this year represents a transition period between the Ford Motor and Zhejiang Geely Holding ownerships. This means that the next financial report will be the full year earnings report for 2010,” said Volvo Cars’ acting deputy CFO Hans Oscarsson in a statement.

The company singled out continued global success for the Volvo XC60 crossover, its best-selling model, strong demand for its range of fuel-efficient DRIVe vehicles in Europe and gaining momentum for the Volvo S60 sedan and Volvo V60 sports wagon models.

Volvo achieved several milestones during the third quarter. Geely officially completed its acquisition of the company on August 2nd, the same day a new board of directors chaired by Geely chairman Li Shufu held its first meeting.

Meanwhile, Jacoby was appointed to his positions on August 16th.

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VOLVO

Sweden’s Volvo regains strength after pandemic puts brakes on earnings

Swedish truck maker Volvo Group was hit by a sharp drop in earnings due to the coronavirus pandemic, but business rebounded at the end of the year.

Published: 3 February 2021 12:21 CET
Sweden's Volvo regains strength after pandemic puts brakes on earnings
Volvo Group CEO Martin Lundstedt. Photo: Adam Ihse/TT

In 2020, the group saw “dramatic fluctuations in demand” due to the Covid-19 pandemic, chief executive Martin Lundstedt said in a statement.

For 2021, Volvo raised its sales forecasts in its trucks division – its core business – in Europe, North America and Brazil.

However, it said it also expected “production disturbances and increased costs” due to a “strained” supply chain, noting a global shortage of semiconductors across industries.

The truck making sector is particularly sensitive to the global economic situation and is usually hard hit during crises.

In March, as the pandemic took hold around the world, Volvo suspended operations at most of its sites in 18 countries and halted production at Renault Trucks, which it owns, in Belgium and France.

Operations gradually resumed mid-year, but not enough to compensate for the drop in earnings.

With annual sales down 22 percent to 338 billion kronor (33.4 billion euros, $40 billion), the group posted a 46 percent plunge in net profit to 19.3 billion kronor (1.9 billion euros).

Operating margin fell from 11.5 to 8.1 percent.

However, the group did manage to cut costs by 20 percent.

“We have significantly improved our volume and cost flexibility, which were crucial factors behind our earnings resilience in 2020,” the group said.

Volvo's business regained strength in the second half of the year.

“Customer usage of trucks and machines increased when the Covid-19 restrictions were eased during the summer and this development continued during both the third and fourth quarters,” it said.

“Both the transport activity and the construction business are back at levels on par with the prior year in most markets.”

For the fourth quarter alone, the company reported a 38-percent rise in net profit from a year earlier.

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