Volvo Cars profit down in Q3 but up YtD
The carmaker reported an operating loss of SEK763m (€83.7m) for the third quarter compared to SEK748m (€82m) for the same period last year, due to adverse exchange rates and spending on new technology. However, revenue rose SEK1.5bn (€164.5m) to SEK26.9bn (€3bn) due to improved market factors.
In a statement, Volvo said: ‘This quarter is known to be challenging in particular due to seasonality. Therefore the reported loss, although disappointing, is in line with expectations. The sales situation continues to be strong in all of the markets and Volvo Car Corporation is gaining market shares.’
Operating profit for the first nine months was SEK477m (€52.3m) with strong growth in all sales regions. China saw the largest increase with growth of 67.8% over 2010. North America grew by 19.9%, the Nordic region by 23.6%, Europe improved by 20.0% and the Overseas region grew by 50.3% compared to the same period in 2010. Market shares improved in all regions compared to prior year.
The carmaker added that it expects to show positive figures for the full year of 2011.
Stefan Jacoby, president & chief executive officer, said: ‘There are concerns about consumer confidence given the turbulence of financial markets. At the same time I'm very pleased about the positive sales developments and the strength of our brand, and the outlook for 2011 remains positive.’For more of the latest industry news, click here.