Volvo Cars have reported strong growth in operating profit of SEK6.8bn (~R10.6 bn) for the first half of 2017, compared to SEK5.6bn (~R8.7 bn) for the same period last year, after taking market share across Europe and experiencing a robust sales increase in China.
Revenues rose to SEK99.1bn (~R154.5 bn) from SEK84.2bn (~R131.3 bn) in the first six months of 2016, while the operating profit margin improved to 6.8 per cent from 6.6 per cent a year earlier, even as the company continues to invest heavily in new cars and technologies.
Sales for the first six months of the year increased by 8.2 per cent compared to the same period last year, at 277 641 cars. The first half increase in sales means Volvo Cars remains firmly on course for a fourth consecutive record year.
“We have reported strong profits at the same time as making ongoing investments in our transformation,” says Håkan Samuelsson, president, and chief executive. “Our momentum continues to build.”
During the first half of 2017, the company gained market share in the EMEA region, following healthy growth in several key markets. Sales were up by 6.6 per cent during the period.
In the Asia Pacific region and China, in particular, Volvo outperformed the market. Sales in the region increased by 22.6 per cent, while China sales were up 27.6 per cent.
In the US, Volvo Cars expect to report solid full-year growth after a strong second half of the year. Delivery constraints affected first quarter sales, but a return to growth during the second quarter and the impending start of delivery of the new XC60 mid-size SUV point to a stronger finish.
“Globally, we expect the pace of growth generated in the first half of the year to continue. We are confident we will report another record year in terms of sales,” comments Samuelsson.
Later this year, Volvo Cars will launch the all-new XC40, its first entry into the fast-growing compact premium SUV segment, completing the company’s SUV line-up.