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Volvo Car Swings to a Loss
Zhejiang Geely Holding Group's Volvo Car unit reported a net loss of 480 million kronor ($74 million) for the fiscal year ended March 31 compared with a profit of 1 billion kronor ($157 million) the year before.
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Zhejiang Geely Holding Group's Volvo Car unit reported a net loss of 480 million kronor ($74 million) for the fiscal year ended March 31 compared with a profit of 1 billion kronor ($157 million) the year before.
Volvo notes that it spent heavily on developing new vehicles and engines last year, even as the European car market contracted.
Operating income plunged to 18 million kronor ($3 million) from 2 billion kronor ($308 billion) a year earlier.
Revenue was nearly flat at 125 billion kronor ($19.2 billion). Vehicle sales fell 6% to 422,000 units as volume dropped 10% to 227,000 vehicles in Europe and 11% to 42,000 units in China.
For the current fiscal year, Volvo predicts that its operating results will again be about break-even. The company doesn't expect to break even on a net basis for another year or two.
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