STOCKHOLM — Volvo Automobiles reported a return to revenue within the first half as demand for electrical vehicles pushed earnings above pre-pandemic ranges, placing the carmaker on a firmer footing because it considers a attainable IPO this 12 months.
Sweden-based Volvo, owned by China’s Geely Holding, stated on Friday it made a first-half revenue of 13.24 billion Swedish crowns ($1.52 billion), greater than double its revenue of 5.52 billion crowns within the corresponding interval of 2019, earlier than the coronavirus struck.
Like a number of different automakers Volvo has been pressured to chop manufacturing because of international shortages of semiconductors, however it stated a powerful market restoration from final 12 months’s plunge in the course of the pandemic helped first-half income rise by 26% to 141 billion crowns.
“The pandemic impact, in terms of our enterprise, we do not see it anymore,” Chief Govt Håkan Samuelsson informed Reuters.
“All our workers haven’t been vaccinated but, however gross sales and manufacturing are actually again to the place we have been.”
The corporate, which is eyeing an preliminary public providing earlier than the top of this 12 months, stated all its areas confirmed stable progress and improved market shares, with chargeable vehicles representing 25% of complete gross sales.
Samuelsson stated the analysis course of forward of a possible IPO was progressing based on plan, including the agency was nonetheless contemplating itemizing on the Stockholm inventory trade within the second half of 2021.
“The corporate stands stronger than ever and we’re within the midst of a really substantial transformation … It must be financed and entry to the inventory market is after all optimistic then,” Samuelsson stated.
Volvo Automobiles had been closely affected in the beginning of the pandemic, plunging to a 989 million loss within the first half of 2020.
The corporate on Friday stored its second-half outlook for flat gross sales and income progress 12 months on 12 months, “except provide of semiconductors improves”. It stated earlier this month that first-half gross sales rose 41% to 380,757 vehicles.
The Gothenburg-based agency plans to grow to be a totally electrical automobile maker by 2030, promote 600,000 battery electrical autos at mid-decade, and construct a European battery gigafactory in 2026.
($1 = 8.6821 Swedish crowns)
(Reporting by Helena Soderpalm; enhancing by Niklas Pollard and Susan Fenton)
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