Volvo Shares See 33 Percent Surge After Q3 Profits Exceed Forecasts
(MENAFN) Shares of Swedish automaker Volvo Cars soared more than 33% on Thursday following a robust third-quarter profit report that surpassed market forecasts.
For the July to September period, Volvo Cars—owned by China’s Geely Holding—posted an operating income of 6.4 billion Swedish kronor ($680.4 million), outperforming analysts’ estimates and marking an increase from $616 million a year earlier, according to Volvo's financial disclosure released Thursday.
The company’s third-quarter EBIT margin climbed to 7.4%, up from 6.2% in the same quarter last year.
Volvo attributed the strong earnings partly to one-off factors but highlighted its ongoing $1.9 billion cost-cutting initiative as a key driver behind the gains.
"The action plan delivered faster than planned reductions in variable and indirect costs during the quarter," the company said in a statement.
Despite the profit surge, Volvo’s revenue for Q3 declined to $9.1 billion, compared with $9.8 billion during the same quarter of 2024.
Retail sales also fell, with 160,514 vehicles sold in the quarter, down 7% year-over-year.
"But the company returned to a modest retail sales growth in September, boosted by all-time high performances in the UK and other markets such as Austria, Türkiye, Canada, Brazil and Mexico," Volvo noted.
The automaker cautioned that while results were solid, they still reflected the ongoing global economic uncertainties and a challenging market landscape.
"Throughout the quarter, Volvo Cars’ performance continued to be under pressure due to a shrinking total premium market and tough competition, especially in the fully electric segment," Volvo added.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
