Volvo Cars, the premium car maker, has reported strong growth in operating profit of SEK6.8bn in the first half of 2017, compared to SEK5.6bn for the same period last year, after taking market share across Europe and experiencing a robust sales increase in China.
Revenues rose to SEK99.1bn from SEK84.2bn in the first six months of 2016, while the operating profit margin improved to 6.8 per cent from 6.6 per cent a year earlier, even as the company continues to invest heavily in new cars and technologies.
Sales for the first six months of the year increased 8.2 per cent compared to the same period last year to 277,641 cars. The first half increase in sales means Volvo Cars remains firmly on course for a fourth consecutive record year.
“We have reported strong profits at the same time as making ongoing investments in our transformation,” said Håkan Samuelsson, president and chief executive. “Our momentum continues to build.”
During the first half of 2017, the company took market share in the EMEA region, following healthy growth in several key markets. Sales were up by 6.6 per cent during the period.
In the Asia Pacific region and China in particular, Volvo outperformed the market. Sales in the region increased by 22.6 per cent, while China sales were up 27.6 per cent.
In the US, Volvo Cars expects to report solid full-year growth after a strong second half of the year. Delivery constraints affected first quarter sales, but a return to growth during the second quarter and the impending start of delivery of the new XC60 mid-size SUV point to a stronger finish.
“Globally, we expect the pace of growth generated in the first half of the year to continue. We are confident we will report another record year in terms of sales,” said Mr. Samuelsson.
Later this year, Volvo Cars will launch its all-new XC40, its first entry into the fast-growing small premium SUV segment, completing the company’s SUV line-up.
Volvo Car Group in 2016
For the 2016 financial year, Volvo Car Group recorded an operating profit of 11,014 MSEK (6,620 MSEK in 2015). Revenue over the period amounted to 180,672 MSEK (164,043 MSEK). For the full year 2016, global sales reached a record 534,332 cars, an increase of 6.2 per cent versus 2015. 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 534,332 cars in 2016 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 2016, Volvo Cars had over 31,000 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).