Volvo’s operating profit fell 36%
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Following the results of the 3rd quarter operating profit of Volvo Cars amounted to 2.1 billion Swedish kronor ($193 million). This is 36.3% less than in the same period a year earlier. The EBIT margin also fell, from 5.5% to 2.6%, and net income per share fell by 87%. During the quarter, the company sold 138 thousand vehicles, which is 8% less than in the 3rd quarter of 2021. One of the few indicators that showed growth was revenue. It increased by 30% and reached $7.3 billion.
The Swedish manufacturer, which has been owned by the Chinese holding company Geely since 2010, attributed the weak third-quarter results to problems with semiconductor supplies, as well as lockdowns in China due to COVID-19 and power outages there. Noting that results were affected by “macro uncertainties around the world,” Volvo Cars CEO Jim Rowan assured that the company’s “flexible structure, strong financial position and substantial liquidity” will “help meet the challenges.” The company reaffirmed its commitment to the all-electric vehicle program from 2030. In the near future, it will introduce a new all-electric Volvo EX90 model, and intends to launch a new model every year.
Shares of Volvo Cars fell 6.6% on the Nasdaq Nordic stock exchange after the publication of financial statements.
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