STOCKHOLM — Volvo Automobiles has not suffered from the worldwide semiconductor scarcity, however dangers linger, its chief government stated on Thursday because the Sweden-based firm reported an 8.2% rise in second-half working earnings.
Volvo, has seen a pointy rebound boosted by rising demand for electrical vehicles, however a number of automakers have been compelled to chop manufacturing currently, attributable to semiconductor shortages.
CEO Hakan Samuelsson stated the corporate, which is owned by China’s Geely Holding, had not seen any misplaced quantity because of the scarcity, including the following 4 weeks had been secured.
“So short-term no disturbance. … However there’s in fact a giant danger that it might come right here in the course of the first quarter. However it is rather exhausting to forecast,” Samuelsson informed Reuters.
Gothenburg, Sweden-based Volvo stated on Thursday it anticipated elevated gross sales this yr and a return to pre-pandemic ranges of profitability, assuming market circumstances proceed to normalise.
The auto trade was hit exhausting final spring attributable to widespread lockdowns in lots of markets.
One brilliant spot within the second half of the yr for Volvo was electrical automobiles, with their share of Volvo‘s gross sales greater than doubling and reaching over 30% of whole gross sales in Europe.
Volvo goals to have absolutely electrical vehicles account for 50% of its world gross sales by 2025, with the remainder to be hybrids.
Talks on a possible merger with sister firm Geely Car are nonetheless on maintain as Geely works to record its shares on Shanghai’s New Star Market, Samuelsson stated, including he anticipated to return again with additional particulars within the first quarter.
Volvo Automobiles reported second-half (July-December) working earnings of 9.50 billion Swedish crowns ($1.1 billion) versus 8.78 billion a yr earlier.
It stated final month that full-year gross sales dropped 6% to 661,713 vehicles whereas gross sales within the second half have been the strongest within the agency’s historical past.
In January, its world gross sales rose by 30.2% to 59,588 vehicles, the agency stated on Wednesday.
Truckmaker Volvo revenue beats forecast, units shareholder payout
STOCKHOLM — Swedish truckmaker AB Volvo reported fourth-quarter core earnings effectively above analysts’ expectations on Wednesday, raised its forecasts for a few of its predominant markets and rolled out a hefty shareholder payout amid a broad restoration in demand.
However Volvo additionally cautioned that the rebound, together with a worldwide chip scarcity, had left its provide chain underneath strain which might result in manufacturing disturbances and better prices at the least in the course of the present quarter.
Adjusted working revenue on the maker of vans, building gear, buses and engines rose to 10.93 billion Swedish crowns ($1.30 billion) from 9.22 billion a yr earlier, above the 8.77 billion seen by analysts in response to Refinitiv information.
“Each the transport exercise and the development enterprise are again at ranges on par with the prior yr in most markets, which has improved the arrogance sooner or later amongst our prospects,” Volvo Chief Govt Martin Lundstedt stated in a press release.
Order consumption at Volvo, which rivals Germany’s Daimler and Traton, amounted to 86,069 vans, up 61% from the year-ago quarter on the again of a broad restoration.
The corporate, which deserted plans to pay annual and further dividends final yr as the primary wave of the COVID-19 pandemic struck however nonetheless retained an unlimited money pile, stated it might make a complete shareholder payout of 15 crowns per share for 2020.
