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Volvo Cars Reports SEK 130.1 Billion Revenue in H1

Auto News - Published on Mon, 22 Jul 2019

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Volvo Cars reports a record revenue for the first six months of 2019 of SEK 130.1 billion, up from SEK 122.9 billion YoY and buoyed by the best first half-year sales performance in the company’s history. For the first six months, sales amounted to a record 340,286 cars, a year-on-year increase of 7.3%. During the period, Volvo Cars grew consistently faster than the overall market.

The company has gained market share across the US, China and Europe, with the UK and Germany recording growth of 30% and 32% respectively. The overall passenger car market in the US declined by 2.0% in first half, while China and Europe fell by 9.3% and 3.1% respectively during the same period.

Mr Håkan Samuelsson, president and chief executive, emphasised that the company has prioritised growth and market share during the period, capitalising on the building momentum for the Volvo brand generated by an all-new line-up of award-winning models.

He added that “At a time when most markets in the world see stagnating car sales, we have had strong growth in the first half. We continue to take market share in all regions where we operate, but increased pricing pressure and tariffs have decreased our operating profit. The cost measures we took earlier this year will come into effect in the second half of the year.”

Operating profit for the first half of 2019 was of SEK 5.5 billion, compared with a SEK 7.8 billion operating profit for the same period last year. For the second quarter of the year, operating profit fell to SEK 2.6 billion, while revenue rose to SEK 67.2 billion.

The first-half operating margin fell to 4.2% from 6.4%, while the operating margin for the second quarter of the year amounted to 3.9%.

Volvo Cars has initiated additional cost measures within the company on top of already planned measures, which combined, aim to lower fixed costs by SEK 2 billion. These actions will come into effect in the second half of the year and running into the first half of 2020.

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Posted By : Mohan Sharma on Mon, 22 Jul 2019
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