Volvo Cars reports third quarter and first nine months 2018 results
CEO Håkan Samuelsson:
Volvo Cars’ growth remained strong in the third quarter with a 14 per cent increase in retail sales and an 18 per cent revenue increase. Compared to last year, the profitability was influenced by product launch costs, higher tariffs as well as license sales effects. For the full year, we expect record sales and continued strong profits.
Highlights from the financial report include the following:
Third quarter:
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Global third-quarter retail sales of 154,914 (135,831) cars
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Net revenue amounted to MSEK 56,776 (48,271)
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Operating profit MSEK 1,814 (3,669)
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EBIT margin 3.2 (7.6) per cent
First nine months:
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Global retail sales for first nine months of 472,467 (413,472) cars
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Net revenue amounted MSEK 179,628 ( 147,687)
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Operating profit MSEK 9,608 (10,445)
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EBIT margin was 5.4 (7.1) per cent
Outlook for the full year 2018:
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Volvo Cars expects profits to continue to be strong
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Volvo Cars expects continued growth in revenue and retail sales supported by our renewed product portfolio
The full financial report can be found HERE and on the Volvo Cars Investor Relations website.
This information is information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 06.00 CET on 26 October 2018.
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Volvo Car Group in 2017
For the 2017 financial year, Volvo Car Group recorded an operating profit of 14,061 MSEK (11,014 MSEK in 2016). Revenue over the period amounted to 210,912 MSEK (180,902 MSEK). For the full year 2017, global sales reached a record 571,577 cars, an increase of 7.0 per cent versus 2016. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 571,577 cars in 2017 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
In 2017, Volvo Cars employed on average approximately 38,000 (30,400) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).