Volvo Cars, the premium car maker, has reported a strong first half of 2016 with operating income more than tripling to SEK5.59bn compared to SEK1.66bn reported in the same period last year. Revenues for the half rose from SEK75.215bn to SEK83.647bn.
The operating profit margin for the first half of this year also tripled to 6.7 per cent from 2.2 per cent for the same period last year.
Sales for the first six months of the year were up 10.5 per cent compared to the same period last year to 256,563 cars. Moreover, this growth was generated from simultaneous increases in all three global sales regions. In Europe, sales rose 10.3 per cent, while the turnaround in the US was confirmed with an increase of 24.8 per cent and sales in China increased 6.3 per cent.
“These numbers demonstrate that the momentum around Volvo Cars’ transformation is building,” said Håkan Samuelsson, president and chief executive.
Sales of the XC90 for the first six months of the year were 43,911, bringing the total sold since launch in 2015 to 84,532, surpassing expectations. This positive trend will continue following the launch of the S90 sedan and the V90 estate, sales of which will accelerate in the second half of 2016.
“This robust first half financial and operational performance combined with a positive product pipeline allows me to state confidently that Volvo Cars expects to report another record full year in 2016 in terms of sales and profitability,” said Mr Samuelsson.
“Volvo Cars is delivering on its commitment to fundamentally transform its business and finances and is firmly on the path to becoming a truly global premium car maker.”
A press conference on the results for the first half year 2016 will be held at 10:00 CET at the Volvo Showroom in Kungsträdgården, Stockholm.
The press conference can be followed via the web here.
More information on Volvo Car Group’s results can be found in the Group's Interim Report First Half, which is available for download here.
Volvo Car Group in 2015
For the 2015 financial year, Volvo Car Group recorded an operating profit of 6,620 MSEK (2,128 MSEK in 2014). Revenue over the period amounted to 164,043 MSEK (137,590 MSEK). In 2015, global sales reached a record 503,127 cars, an increase of 8 per cent versus 2014. The record sales and operating profit cleared the way for Volvo Car Group to continue investing in its global transformation plan.
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 503,127 in 2015 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 2015, Volvo Cars had almost 29,000 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), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).