Mexican Media Brands
Volvo Deepens Cost-Cutting as Profits Plunge
Volvo Car Corp. reports higher unit sales and revenue in the second quarter, but tariffs and pricing pressure caused profits to plunge.
#economics
Share
Volvo Car Corp. reports higher unit sales and revenue in the second quarter, but tariffs and pricing pressure caused profits to plunge.
Unit sales in April-June rose 5% to 179,500 cars. Revenue advanced 2% to 67.2 billion kronor ($7.2 billion). But operating profit plummeted 38% to 2.6 billion kronor ($278 million), and net income dropped 54% to 1.4 billion kronor ($150 million).
Volvo says it is responding with new but unspecified measures which, combined with previously planned actions, will lower its fixed costs by 2 billion kronor ($214 million) by the middle of next year.
Through the first half of 2019, the company’s revenue grew 6% to 130 billion kronor ($13.9 billion). Unit sales rose 7% to 340,800 cars.
But operating profit in January-June fell 29% to 5.5 billion kronor ($588 million). Volvo’s operating margin shrank to 4.2% from 6.4%, including 3.9% in the second quarter.
RELATED CONTENT
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
GM: The Drive to Profitability, Part 1
General Motors released rather impressive numbers for 2015.
-
Fuel Economy Gains in July
What you’re looking at here is a sales-weighted fuel economy chart (the numbers in the white boxes represent miles per gallon) that was put together by two diligent researchers, Michael Sivak and Brandon Schoettle, of the University of Michigan Transportation Research Institute.