Volvo Cars posts 21% growth in profit in H1 2017

Volvo Cars has reported strong growth in operating profit of SEK 6.8 billion (Rs 5,508 crore) in the first half of 2017, compared to SEK 5.6 billion (Rs 4,536 crore) for the same period last year, after taking market share across Europe and experiencing a robust sales increase in China.

Revenues rose to SEK 99.1 billion (Rs 80,271 crore) from SEK 84.2 billion (Rs 68,202 crore) in the first six months of 2016, while the operating profit margin improved to 6.8 percent from 6.6 percent 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 8.2 percent compared to the same period last year to 277,641 cars. The first half-year 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,” said Håkan Samuelsson, president and chief executive. “Our momentum continues to build.”

Sales on a high in APAC and China
During the first half of 2017, the company took market share in the EMEA region, following healthy growth in several key markets. Sales were up by 6.6 percent during the period.

In the Asia Pacific region and China in particular, Volvo outperformed the market. Sales in the region increased by 22.6 percent, while China sales were up 27.6 percent.

In the US, Volvo Cars expects 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 midsize 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,” said Samuelsson.

Later this year, Volvo Cars will launch its all-new XC40, its first entry into the fast-growing small premium SUV segment, completing the company’s SUV line-up.

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