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Volvo Cars Q3 Profit, Sales Volume Down; Nov. Retail Sales Decline - Quick Facts

Swedish luxury automaker Volvo Car Group, owned by China's Zhejiang Geely Holding (GELYF.PK), reported Tuesday that its third-quarter net income fell 31 percent to 2.3 billion Swedish kronor from last year's 3.3 billion kronor.

Basic earnings per share declined 21 percent to 43.10 kronor from 54.30 kronor a year ago.

Revenue fell 7 percent to 60.8 billion kronor from 65.8 billion kronor last year. Retail sales went down 17 percent from last year to 149,900 cars.

The company said Covid-19 outbreak in Southeast Asia caused an industry-wide supply shortage and impacted production and sales volumes in the third quarter.

Production was approximately 50,000 cars lower in the quarter compared to the same period in 2020, while sales in the period fell by approximately 30,000 cars as the drop in production volumes was compensated by lowered inventory.

Håkan Samuelsson, chief executive of Volvo Cars, said, "The supply situation has improved going into the fourth quarter, but we expect the industry-wide shortage of semi-conductors to remain a restraining factor."

Further, the company noted that preliminary figures for retail sales in November show sales volumes of about 52,000 cars, down from last year due to build a up of in-transit inventory.

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