Volvo Cars posts strong first half 2016

Volvo Cars, the premium Swedish carmaker, has reported a strong first half of 2016.

Operating income has more than tripled to SEK5.59 billion (Rs 4,527 crore) compared to SEK1.66 billion (Rs 1,344 crore) reported in the same period last year. Revenues for the half rose from SEK75.215 billion (Rs 60,924 crore) to SEK83.647 billion (Rs 67,754 crore).

The operating profit margin for the first half of this year also tripled to 6.7 percent from 2.2 percent for the same period last year.

Sales for the first six months of the year were up 10.5 percent compared to the same period last year to 256,563 cars. Moreover, this growth was generated from simultaneous increases in all three global sales regions. In Europe, sales rose 10.3 percent, while the turnaround in the US was confirmed with an increase of 24.8 per cent and sales in China increased 6.3 percent.

“These numbers demonstrate that the momentum around Volvo Cars’ transformation is building,” said Håkan Samuelsson, president and chief executive.

Sales of the XC90 for the first six months of the year were 43,911, bringing the total sold since launch in 2015 to 84,532, surpassing expectations. Volvo Cars says it expects this positive trend to continue, following the launch of the S90 sedan and the V90 estate, sales of which will accelerate in the second half of 2016.

“This robust first half financial and operational performance combined with a positive product pipeline allows me to state confidently that Volvo Cars expects to report another record full year in 2016 in terms of sales and profitability,” said Mr Samuelsson.

“Volvo Cars is delivering on its commitment to fundamentally transform its business and finances and is firmly on the path to becoming a truly global premium carmaker,” said Samuelsson.

Also read: Volvo Cars posts 10.5% sales growth for first six months of 2016