Improved sales are mainly driven by “strong demand” for the all new S60 and V60 together with the Volvo XC60 crossover.
Volvo Car Corporation posted today a profit of 600 million SEK (~$95 million) because of increased sales for Q2. However the Chinese owned company warned of a “volatile second half of the year.
The operating improvement of 170 million Kronor was explained by higher volumes – retail sales in Q2 increased by 26.6% to 123,919 units, compared to 97,884 units in 2010 – as well as an improved mix of vehicles. This was partially offset by increased costs due to investments to support expansion plans and negative exchange rates. Revenue was 33 billion Kronor, a 3.5 billion increase from a year ago. In the first six months of 2011, Volvo Car Corporation has delivered a small operating profit of 1.2 billion Kronor.
Growth was recorded in all sales regions, with China demonstrating the largest increase with 62.1% versus 2010. North America grew by 43.0%, Nordic region by 17.7%, Europe improved by 15.5% and the Overseas region grew by 41.6% compared to the same period in 2010. Market share improved in all regions compared to the previous year.
“We are gradually returning to sustainable profitability although we have more work to do before we reach our objectives. A good sales increase is evident in many markets as we are working to revitalize the Volvo brand to attract more customers,” said Stefan Jacoby, President and CEO, Volvo Car Corporation, in a statement.
In the first six months of 2011, Volvo Car Corporation has sold 230,746 vehicles, an improvement of 20.3% compared to 2010. In June, Volvo Car Corporation announced the need for additional production capacity and commenced hiring an additional 600 blue collar employees.
Improved sales are mainly driven by “strong demand” for the all new S60 and V60 together with the Volvo XC60 crossover with sales improving month by month. The low emission Volvo DRIVe range comprised 19% of sales in Europe. The second quarter also saw the production start of the first 250 Volvo C30 Electric vehicles .
Volvo said “ the current unstable economic climate is likely to result in additional volatility both regarding consumer confidence as well as exchange rates and raw material prices that may in turn impact profits. Additionally, reduced production capacity during the vacation period may also impact business result in the third quarter.”
“The recent developments in the global economy make it difficult for us to predict the car market and we need to be prepared for changes in consumer demand,” said Stefan Jacoby, President and CEO, Volvo Car Corporation.
