Volvo profits soar
Volvo Cars has reported strong growth in operating profit of SEK6.8bn in the first half of 2017, compared with SEK5.6bn for the same period last year, after taking market share across Europe and experiencing a robust sales increase in China.
Revenues rose to SEK99.1bn from SEK84.2bn in the first six months of 2016, while the operating profit margin improved to 6.8% from 6.6% a year earlier, even as the company continues to invest heavily in new cars and technologies.
Sales for the first six months of the year increased 8.2% compared with the same period last year to 277,641 cars. The first half increase in sales means Volvo Cars remains firmly on course for a fourth consecutive record year.
Håkan Samuelsson, president and chief executive, said, ‘We have reported strong profits at the same time as making ongoing investments in our transformation. Our momentum continues to build.’
During the first half of 2017, the company took market share in the EMEA region, following healthy growth in several key markets. Sales were up by 6.6% during the period.
In the Asia Pacific region and China in particular, Volvo outperformed the market. Sales in the region increased by 22.6%, while China sales were up 27.6%.
In the US, Volvo Cars expects to report solid full-year growth after a strong second half of the year. Delivery constraints affected first quarter sales, but a return to growth during the second quarter and the impending start of delivery of the new XC60 mid-size SUV point to a stronger finish.
Håkan Samuelsson added, ‘Globally, we expect the pace of growth generated in the first half of the year to continue. We are confident we will report another record year in terms of sales.’