Volvo Car Group reports first half operating profit of SEK 1.2bn
Volvo Car Group has reported an operating profit for the first six months of 2014 of 1,210 MSEK on the back of strong demand in key markets such as China, Sweden and Western Europe.
Retail sales for the first six months of the year increased 9.5 per cent year on year to 229,013 compared to 209,117 for the same period last year.
“It has been a positive first half of the year,” said Håkan Samuelsson, President and Chief Executive of Volvo Car Group. “This first half result is both solid and encouraging.”
The first half profit reverses a loss of 577 MSEK for the same period in 2013 and comes on the back of Volvo’s full year operating profit of 1,919 MSEK for 2013, highlighting the company’s ability to generate consistent profitability and its success in implementing its transformation plan.
Revenue for the period was 64,785 MSEK against 56,364 MSEK last year, while net income amounted to 535 MSEK compared to a loss of 778 MSEK in 2013.
The positive result comes the week before the global launch of the all-new Volvo XC90. “We are excited about the launch of the all-new XC90, which marks the beginning of the re-launch of the Volvo brand,” said Mr Samuelsson.
Full results for the first half of 2014 and a more detailed full-year outlook will be revealed today at 10:00 CET during a press conference at the Volvo Showroom in Kungsträdgården, Stockholm.
More information on Volvo Car Group’s results over the first half of 2014 can also be found in the Group's Interim Report January-June 2014, which will be available for download on the Global Newsroom (media.volvocars.com) as of 10:00 CET.
About the Volvo Car Group Interim Report January-June 2014
The financials in the Financial Report January-June 2014 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.
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 427,000 in 2013 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.
As of December 2013, Volvo Cars had over 23,000 employees worldwide. 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) and Chengdu (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China).