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Volvo Cars Swings to a Profit
Volvo Car Group reports an operating profit of 3.1 billion kronor ($384 million) in the first quarter, reversing an 11 million loss in the same period in 2015.
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Volvo Car Group reports an operating profit of 3.1 billion kronor ($384 million) in the first quarter, reversing an 11 million loss in the same period in 2015. Net income surged to 2.1 billion kronor ($257 million) from a loss of 241 million kronor a year earlier.
Revenue in January-March jumped 24% to 33.7 billion kronor ($4.2 billion), aided by strong demand for Volvo’s new high-tech XC90 large crossover vehicle. Unit sales surged 12% to 120,600 vehicles.
The gains follow strong results for 2015, when the company’s operating profit tripled, revenue rose 19% and vehicle deliveries climbed 8% to a record 503,100 units. The carmaker is targeting annual volume of 800,000 cars by 2020.
Today’s report is Volvo Cars’ first quarterly statement since the company was acquired in 2010 by Zhejiang Geely Holding Group Ltd.
CEO Hakan Samuelsson says Volvo wants to “act as a listed company” rather than be considered “a division in someone else’s business.” He told the Financial Times in December that the company aims to return to the bond market this year.
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