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Net Profit Plunges 55% for Volvo Cars
Volvo Car Group's third-quarter revenue rose 18% to $621 million. But net income plummeted 55% to $120 million.
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Volvo Car Group’s third-quarter revenue rose 18% to 56.8 billion kronor ($621 million). But net income plummeted 55% to 1.1 billion kronor ($120 million).
The company’s retail sales climbed 14% to 154,900 units in July-September. Volvo Cars posted big gains in Europe (+8% to 69,300 units), China (+14% to 34,700) and the U.S. (+15% to 26,300). Growth surged 33% to 24,600 units in the rest of the world.
But product launch costs and higher tariffs cut quarterly operating profit 50% to 1.8 billion kronor ($197 million). The company also established its Polestar Group as a stand-alone, all-electric performance brand in the third quarter. The unit is no longer consolidated into Volvo Cars.
The company’s net revenue through the first nine months of 2018 grew 22% to 179.6 billion kronor ($19.6 billion). Retail vehicle sales climbed 14% to 472,600 units. But net and operating incomes each shrank more than 7% to 9.7 billion kronor ($1.1 billion) and 6.7 billion kronor ($732 million), respectively.
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