Volvo Car Corporation stays profitable after the first nine months, despite a predicted loss in the third quarter
The third quarter of 2011 shows an operating loss (EBIT*) of 763 MSEK for Volvo Car Corporation.
This quarter is known to be challenging in particular due to seasonality. Therefore the reported loss, although disappointing, is in line with expectations. The sales situation continues to be strong in all of the markets and Volvo Car Corporation is gaining market shares.
"There are concerns about consumer confidence given the turbulence of financial markets. At the same time I'm very pleased about the positive sales developments and the strength of our brand, and the outlook for 2011 remains positive", says Stefan Jacoby, President & CEO.
Compared to the third quarter prior year when a profit of 748 MSEK was recorded, the result is affected by adverse exchange rates and with spending on new technology. Revenue in the third quarter was 26.9 BSEK, a 1.5 BSEK increase from a year ago, due to improved market factors.
Volvo Car Corporation has delivered an operating profit of 477 MSEK in the first nine months and expects to show positive figures for the full year of 2011.
Retail sales in the third quarter increased by 27.7 percent to 103,119 units, an improvement of 22,396 units.
Significant growth was recorded in all sales regions, with China demonstrating the largest increase with 67.8 percent over 2010. North America grew by 19.9 percent, the Nordic region by 23.6 percent, Europe improved by 20.0 percent and the Overseas region grew by 50.3 percent compared to the same period in 2010. Market shares improved in all regions compared to prior year.
For September, Volvo Car Corporation recorded a new historical all time high with sales of nearly 42,000 units, making Volvo the fastest growing premium car brand.
In the first nine months of 2011, Volvo Car Corporation has sold 333,865 vehicles (retail), an improvement of 22.5 per cent compared to 2010. Improved sales are mainly driven by strong demand for the 60-series, with the all new S60 and V60 together with the XC60 crossover outperforming all other car lines.
Sales of the low-CO2 DRIVe models continues to improve. In Europe 29.4 percent of all sold Volvo cars in the third quarter carried the DRIVe badge.
The XC90 continues to perform well, growing by nearly 10 percent compared to 2010 in the third quarter, and the XC range now represents around 35 percent of total sales.
* (earnings before interest and taxes)
For questions please call:
Corporate Spokesperson Per-Åke Fröberg + 46 31 59 65 25