Volvo Cars reports operating profit of SEK 14.2bn for 2018
Volvo Cars has reported an operating profit of SEK14.2 billion for 2018, an increase of 0.9 per cent compared with 2017.
Net revenue increased strongly by 21 per cent to SEK252.7 billion, on the back of the company’s best ever annual sales of 642,253 cars, an increase of 12.4 per cent compared to 2017.
The operating profit margin for the full year was 5.6 per cent, down from 6.7 per cent last year.
“This result is in line with our expectations, but does not totally live up to our longer-term ambitions. Revenue growth and sales in 2018 were healthy, but profitability was affected by external factors such as tariffs and increasing price competition in several markets,” said Håkan Samuelsson, president and chief executive.
“For 2019, we see another year of volume g owth as we continue to benefit from our strong product program and increased capacity.,” he added. “But we have to be realistic and acknowledge that margins will remain under continued pressure.”
Operating profit for the fourth quarter was SEK4.5 billion, an increase of 25 per cent compared to the same period last year.
Net revenue in the fourth quarter increased by 20 per cent to SEK73.0 billion, as retail sales rose 7.3 per cent to 169,700 cars. The operating profit margin for the period was 6.2 per cent, up from 5.9 per cent the same period last year.
Full details of the company’s financial results are available by following this link and will be discussed further at a press conference starting at 10:00am CET, which can be followed via this link.
The full financial report can be found HERE and on the Volvo Cars Investor Relations website.
For media enquiries contact:
Media Relations
+46 31 596525
For analyst enquiries contact:
Therese Jandér, Acting Head of Investor Relations Volvo Car Group
SE-405 31 Goteborg, Sweden
Registered Office Goteborg,Sweden
Registration No. 55 6074-3 08 9
Telephone: +46 (0)72 96 69 266
investors@volvocars.com
www.voIvocars.com
This information is information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 06.00 CET on 07 February 2019.
Volvo Car Group in 2017
For the 2017 financial year, Volvo Car Group recorded an operating profit of 14,061 MSEK(11, 014 MSEK in 2016). Revenue over the period amounted to 210,912 MSEK (180,902 MSEK). For the full year 2017, global sales reached a record 571,577 cars, an increase of 7.0 per cent versus 2016. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 571,577 cars in 2017 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
In 2017, Volvo Cars employed or average approximately 38,000 (30,400) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).
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