Volvo Cars’ first quarter 2018 operating profit rises 3.6 per cent to SEK 3,616 million

Volvo Cars, the premium car maker, today reports its financial result for the first quarter of 2018. Highlights from the financial report include the following:

First quarter: 

• Operating profit of MSEK 3,616, an increase of 3.6 per cent compared to Q1 2017
• Net revenue up to MSEK 56,813, up 18.9 per cent versus Q1 2017
• Net income of MSEK 2,558 , a decrease of 1.8 per cent compared to Q1 2017
• EBIT margin 6.4 per cent, versus 7.3 per cent in Q1 of 2017
• Global first-quarter retail sales up 14.1 per cent to 147,407 cars

Outlook for 2018: 

• Volvo expects the worldwide passenger car market to grow and the premium segment to continue to develop positively
• Volvo Cars expects continued growth in revenue and retail sales supported by our renewed product portfolio, as well as incremental sales of the XC40
• Volvo expects profits to remain strong based on an improved model mix following the completion of the roll out of SPA cars and the introduction of the XC40
• Profit is expected to be partly impacted by increased expenses related to continued focus on marketing, R&D and digitalisation

The full financial report can be found on the Volvo Cars Investor Relations website.

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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).