AFP – Carmaker Volvo Cars posted a sharp increase in third quarter profits yesterday, as higher sales in the United States (US) and Europe and lower costs for raw materials boosted profitability.
The carmaker, which is majority owned by Chinese automaker Geely, reported an operating profit of SEK4.5 billion (USD400 million) for the third quarter – up from SEK2 billion a year earlier.
“During the third quarter, we reported strong sales and revenue growth, which in combination with lower costs for raw materials and logistics, resulted in a solid underlying operating profit,” Chief Executive Officer of Volvo Cars Jim Rowan said in a comment. Volvo Cars also saw a more than fourfold increase in net income for the period, reaching SEK3.2 billion, compared to SEK665 million for the same period a year before.
Revenue rose 16 per cent to SEK92 billion, with the company reporting a 50-per-cent increase in the cars sold in the US, and a 34-per-cent increase in Europe.