Continued impressive performances of Volvocars Corps as profits increase


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Wednesday, 17 August 2011
Chinese owned Sweden based Volvocar Car Corporation, reported an operating profit of Skr 600 million for the second quarter.

It is an improvement of Skr170 million compared to the same period a year ago. But CEO Stefan Jacoby is talking of a more uncertain period in the future.

“Gradually we will return to sustainable profitability, but we still have more work to do before we reach our goals,” writes Stefan Jacoby in the report that became public at nine o'clock, Swedish time on Wednesday.


The improvement was attributed mainly to higher sales volumes and a better model mix. Other aspects of the profits were down by higher costs for investment in expansion as well as affects of exchange rate developments dues to exchange rate volatility.

The sale of Skr33 billion, was an increase of Skr3.5 billion compared with a year ago. In total during the first half, Volvo cars amassed a profit of Skr1.2 billion.

Volvo Cars sold 123,919 cars in the second quarter, an increase of 26.6 percent. In China, sales grew by 62 percent in North America by 43 percent and in Europe with 15.5 percent.

Demand for the new S60 and V60 are described as strong, while sales of the XC60 is rising month by month.

But the new instability in the economic climate will likely affect both consumer confidence and lead to rapid changes in exchange rates and commodity prices, warns Stefan Jacoby. It can affect profitability in the coming period.

During the first half of 2011 has Geely- owned Volvo Cars sold 230,746 cars, an increase of 20.3 percent compared to the first half of last year.
By Team

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