Volvo Cars reports third quarter 2019 operating profit of SEK 3,492 million
CEO Håkan Samuelsson:
“During the third quarter, Volvo Cars continued to grow faster than the industry in Europe, China and the US. The growth in unit sales, revenue and profit was driven by a strong demand for our SUV range as well as cost efficiency. Our focus on sustainable production, and the ambition to reduce total lifecycle carbon footprint of our cars by 40 per cent by 2025, will ensure a long-term sustainable business, which is core to Volvo Cars, our consumers and the environment.”
Highlights from the financial report include the following:
- Global third-quarter retail sales up 7.7 per cent to 166,878 cars
- Net revenue up to MSEK 64,827, up 14.2 per cent versus Q3 2018
- Operating profit of MSEK 3,492, an increase of 90.0 per cent compared to Q3 2018
- Net income of MSEK 2,376, an increase of 108.8 per cent compared to Q3 2018
- Cash flow from operating and investing activities of MSEK 1,976, versus MSEK -6,631 in Q3 2018
- EBIT margin 5.4 per cent, versus 3.2 per cent in Q3 2018
Outlook for 2019:
- Volvo Cars expects continued growth in sales and revenue
- Volvo Cars expects market conditions to put continued pressure on margins
- Volvo Cars expects volume growth and initiated cost actions to strengthen profit in the second half of the year compared with the same period last year.
- After an intense period of investments in our global footprint and new technologies, Volvo Cars expect a slightly lower level of capital expenditure.