Volvo Car Group reports operating profit in first half of 2012 despite challenging market conditions
- Operating profit (EBIT) of 239 MSEK
- Sales performance affected by weaker market
- Group transformation programme on track
Volvo Car Group today reported an operating profit (EBIT) of 239 MSEK over the first six months of 2012, down from an EBIT of 1,529 MSEK over the same period in 2011. Revenue over the period increased by 3.9 per cent to 65.3 BSEK compared with the first half of 2011 (62.9 BSEK). Volvo Car Group's global retail sales for the first half of 2012 amounted to 221,309 cars, down 4.1 per cent versus the same period in 2011 (230,746). The result shows Volvo Car Group's resilience despite challenging market conditions.
Several strategic co-operations materialized during 2012, which will be of high significance to ensure the future success of the company:
- Launch of all-new Volvo V40 during Geneva Motor Show;
- Sales start of Volvo V60 Plug-in Hybrid;
- Signing of Memorandum of Understanding (MoU) with China Development Bank on possible financing opportunities;
- Signing of MoU with Zhejiang Geely to explore further co-operation between the companies;
- Advancement of established partnerships with Siemens and Vattenfall;
- Establishment of Volvo Car Financial Services for US retailers and customers.
More in-depth information on Volvo Car Group's results over the first half of 2012 can be found in the group's Financial Report January-June 2012. The report contains more details on development in Volvo Car Group's various markets, as well as the progress made towards Volvo Car Group's long-term volume target of selling 800,000 cars worldwide in 2020. The full report is available for download here.
"We are building robustness into our group and we have just begun our transformation journey," said Stefan Jacoby, CEO and President of Volvo Car Corporation. "Our operating performance shows that during the first half of the year, we have taken a pro-active approach to protect margins, stay prudent and not participate fully in incentive wars in some markets. The economic uncertainties in most of our markets will remain for the rest of the year, and competition is stiff."
"The all-new V40, launched this spring, will start to support sales in the second part of 2012 and we are thrilled by the reception of the car," Stefan Jacoby added. "Another important product launch was the V60 Plug-in Hybrid, the first proof point of our ambition to develop Volvo Car Group into a leading actor in car electrification. Both these cars are early deliverables on the new strategy we launched in 2010. In order to reach our targets, we need to take major development steps in the areas of products, production and competence. Backed by committed owners, we are on track to deliver on the changes needed."
About the Volvo Car Group Financial Report January-June 2012
The financials in the Financial Report January-June 2012 refer to the consolidated business result of Volvo Car Group. This includes Volvo Car Corporation (Volvo Personvagnar AB), its parent company Geely Sweden AB, and all its subsidiaries such as Volvo Car NV Belgium, all sales companies around the world including North America, Volvo China Investment Co Ltd, and Volvo Cars Real Estate and Assets AB. Joint ventures and minority interest, are reflected in accordance with IFRS accounting principles.