Volvo Car Group delivers turnaround with full-year operating profit for 2013
- Operating profit for FY 2013 of MSEK 1,919 after H1 operating loss of MSEK -577
- Result supported by cost control and strong sales
- Volvo Cars delivers on its transformation plan
Volvo Car Group today reports an operating profit for 2013 of 1,919 MSEK (66 MSEK in 2012). Revenue over the period amounted to 122,245 MSEK (124,547 MSEK), while net income amounted to 960 MSEK (-542 MSEK). This strong turnaround from the first half of 2013 is further tangible proof of Volvo Car Group’s progress in implementing its transformation plan.
In 2013, Volvo Cars continued its transformation as it launched the biggest renewal of products in its history in May and the all-new Drive-E powertrain family during the autumn. Retail sales for the year amounted to 427,840 (421,951) cars, an increase of 1.4 per cent compared to 2012.
While the first half of the year was challenging, especially in Europe and the US, the second six months saw a turnaround in sales, primarily due to strong growth in China, a continued focus on cost and the release of new and refreshed models. The Chinese market showed impressive year-on-year sales growth of 45.6 per cent to 61,146 (41,989) units. In November, series production of the Volvo S60L, a longer wheel base version of the S60 sedan aimed at the Chinese market, started at the Chengdu plant.
“This full-year profit represents a significant turnaround compared to the result for the first six months of 2013,” says Håkan Samuelsson, President and CEO of Volvo Car Group. “Apart from a good sales performance in the second half of the year, our focus on cost has been an essential factor in returning to profitability.”
More information on Volvo Car Group’s results over 2013 can be found in the Group's Financial Report January-December 2013, which is available for download here.
About the Volvo Car Group financials for 2013
The financials in the Financial Report January-December 2013 refer to the consolidated business result of Volvo Car Group. This includes Volvo Car Corporation, its parent company Geely Sweden AB, and all its subsidiaries. In Sweden, audited annual reports for Geely Sweden Holdings AB, Geely Sweden Automotive AB, Geely Sweden AB and Volvo Car Corporation are filed with the authorities on an annual basis. The consolidated financial statements of Geely Sweden AB represent the Volvo Car Group business performance.