The Strategist

Volvo hits sales record


02/08/2019 - 11:29



The Swedish company Volvo Cars announced results of 2018: car sales rose to a record in the company's history.



Tony Webster via flickr
Tony Webster via flickr
"Net revenue increased significantly by 21% and amounted to 252.7 billion Swedish kronor, which was the result of the best sales in the history of the company in the amount of 642,253 cars, which is 12.4% more than in 2017," the company said in a press-release.

Operating profit grew by 0.9% to 14.2 billion Swedish kronor in 2018. Full-year operating profit margin was 5.6% compared to 6.7% last year.

“This result is in line with our expectations, but not fully in line with our long-term ambitions. The growth in revenue and sales in 2018 was significant, but external factors such as tariffs and increased price competition in several markets influenced profitability,” said Håkan Samuelsson, President and CEO.

“In 2019, we will see another year of volume growth, as we continue to benefit from our strong product and capacity program,” the top manager added. “But we must be realistic and admit that the margin will remain under constant pressure.” 

Operating profit for the fourth quarter amounted to 4.5 billion Swedish kronor, an increase of 25% over the same period last year.

Net sales grew by 20% to 73.0 billion Swedish kronor in the fourth quarter, and retail sales increased by 7.3% to 169,700 vehicles. Operating margin for this period was 6.2%, compared with 5.9% for the same period last year.

Volvo has been operating since 1927. The car manufacturing company was part of the Swedish Volvo Group until 1999, when Ford Motor was bought. In 2010, the Chinese company Zhejiang Geely (Geely Holding) bought Volvo Cars and remains its owner until now.

The head office of Volvo Cars, the product development, marketing and administration department, is mainly located in Gothenburg (Sweden). The Volvo Cars office in China is located in Shanghai. The main automobile factories are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (USA), Chengdu and Dakin (China), and the engines are manufactured in Skövda (Sweden) and Zhangjiakou (China), body components are made in Olofström ( Sweden).

source: bloomberg.com




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