Volvo Car Group expects sales for the full year to increase by close to 10 per cent in 2014 driven by steady growth in key markets and an improving product offer, according to Håkan Samuelsson, president and chief executive.
Mr Samuelsson was speaking at the company’s first half results announcement in Stockholm where he reported an operating profit of SEK 1,21bn for the first six months of 2014, with sales up 9.5 per cent to 229,013 and revenue of SEK 64,8bn. Net income was SEK 535m.
Volvo’s profitable first half and encouraging full year sales forecast continues the positive momentum around the company, which is implementing a transformation plan and preparing for the imminent launch of the all-new XC90 next week.
“After this solid first half, we look forward from a position of strength. Growing demand for first-class safety and environmental performance will continue to support our global growth,” said Mr Samuelsson. He added that at this stage he expects full-year operating income this year to be on par with 2013.
Sales of Volvo cars in China rose by 34.4 per cent during the first half of the year and Volvo Cars expects to continue to grow strongly in what is now its biggest market, helped by demand for new local models like the S60L and a refreshed S80L, as well as a further expansion of the dealer network.
“We are growing our presence in China and we expect to sell at least 80,000 cars there this year. The European market is also showing signs of recovery and growth and we are well placed to benefit further. We are committed to the US, where a new management team is implementing a revival plan to improve our performance,” said Mr Samuelsson.
Volvo Cars strengthened its position as market leader in Sweden, with sales rising by 20.2 per cent in the first half. In Western Europe the continuing roll-out of the company’s brand new, class-leading Drive-E engines boosted demand in important markets such as the UK, Germany and the Netherlands. Total sales in the region rose by 8.7 per cent over the first six months of 2014.
More information on Volvo Car Group’s results over the first six months of 2014 can be found in the Group's Interim Report January-June 2014. The report contains more details on developments in Volvo Car Group’s various markets, as well as in-depth financial information. The full report is available for download here. For more information on Volvo Cars Investor Relations, click here.
About the Volvo Car Group Financial 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).