Volvo Cars sees sourcing situation improve after third quarter profit decline

People look at a Volvo XC40 car at the Beijing International Automobile Exhibition, or China Motor Show, in Beijing, China on September 26, 2020. REUTERS / Thomas Peter / File Photo

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STOCKHOLM, Nov. 30 (Reuters) – Automaker Volvo Cars (VOLCARb.ST) said on Tuesday that the supply situation improved at the start of the fourth quarter, after releasing its first quarterly report after listing its stock market shares last month.

The Gothenburg-based automaker, majority owned by Chinese company Geely Holding (GEELY.UL), said preliminary sales volumes were around 52,000 cars in November, down year-over-year due to the decline in production and the accumulation of stocks in transit.

He added that supply was still tight, but production had “improved month by month” since September, when the supply of cars was still below demand.

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“The supply situation improved in the fourth quarter, but we expect the industry-wide semiconductor shortage to remain a limiting factor,” Managing Director Hakan Samuelsson said in a statement. .

Volvo Cars confirmed previously reported operating profit of SEK 3.3 billion ($ 362.6 million), up from 4.6 billion a year ago, and revenues down 7% to 60, 8 billion crowns.

Volvo, which previously warned second-half sales volumes could drop year-over-year due to material shortages, maintained its annual outlook for sales volume and revenue growth with improved profitability at pre-pandemic levels. Read more

Like several other automakers, Volvo, whose shares have jumped nearly 30% since the stock market debut on Oct. 29, has been forced to cut production due to a global semiconductor shortage.

($ 1 = 9.1009 Swedish kronor)

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Reporting by Helena Soderpalm; Editing by Simon Johnson

Our Standards: Thomson Reuters Trust Principles.


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