Volvo announces annual profits
Volvo Cars has reported a 0.9% increase in profit in 2018.
Net revenue increased by 21% to SEK 252.7bn on the back of the company’s best ever annual sales of 642,253 cars, an increase of 12.4% compared with 2017.
‘This result is in line with our expectations, but does not totally live up to our longer-term ambitions. Revenue growth and sales in 2018 were healthy, but profitability was affected by external factors such as tariffs and increasing price competition in several markets,’ said Håkan Samuelsson, president and chief executive of Volvo Cars.
‘For 2019, we see another year of volume growth as we continue to benefit from our strong product programme and increased capacity. But we have to be realistic and acknowledge that margins will remain under continued pressure.’
Operating profit for the fourth quarter increased 25% compared with the same period last year. Net revenue in the fourth quarter increased by 20% to SEK 73bn as retail sales rose 7.3% to 169,700 cars. The operating profit margin for the period was 6.2%, up from 5.9% the same period last year.
