The Strategist

Volvo profit jumps by 43%

07/19/2018 - 12:17

Net profit of the Swedish automaker Volvo increased by 43% to 15.18 billion Swedish kronor (about $ 1.711 billion) in the first half of 2018, according to the automaker.

Earnings per share rose to 7.31 Swedish kronor ($ 0.8) from 5.11 Swedish kronor ($ 0.6) a year earlier. In annual terms, the company's revenue increased by 16.9% to 192.767 billion kronor ($ 21.734 billion).

In the second quarter, Volvo's profit rose 1.6 times year on year to 9.384 billion Swedish kronor (about $ 1.05 billion). Diluted earnings per share for the reporting period were 4.53 Swedish kronor ($ 0.5) vs. 2.86 Swedish kronor ($ 0.3) a year earlier. 

"Although we are moving in the right direction, there is still room for improvement, in particular, it is necessary to find a balance between investing in new technologies and areas with good potential, on the one hand, and reducing costs and flexibility on the other," commented President and CEO of Volvo Martin Lundstedt.

The company notes that the largest increase in sales in the first half of the year was recorded in South America (by 22%). Sales also increased significantly in North America (+ 21%) and Asia (+ 20%). Sales in Europe for the period increased by 13%.

Volvo, founded in 1927, remains one of the world's leading manufacturers of trucks, buses, construction equipment, and marine and industrial engines. The company's headquarters is in Gothenburg, Sweden.