Volvo Cars third quarter profit, lower sales volume; Retail Sales Decline in November – Quick Facts
(RTTNews) – Swedish luxury automaker Volvo Car Group, owned by Chinese group Zhejiang Geely Holding (GELYF.PK), announced on Tuesday that its third-quarter net profit fell 31% to SEK 2.3 billion Swedish kronor against 3.3 billion crowns last year.
Basic earnings per share fell 21% to NKr 43.10 from NKr 54.30 a year ago.
Turnover fell 7% to 60.8 billion crowns from 65.8 billion crowns last year. Retail sales fell 17% from a year ago to 149,900 cars.
The company said the Covid-19 outbreak in Southeast Asia caused a supply shortage across the industry and impacted production and sales volumes in the third quarter.
Production was about 50,000 cars lower in the quarter compared to the same period in 2020, while sales during the period fell by about 30,000 cars as lower production volumes were offset by a decrease in stocks.
Håkan Samuelsson, Managing Director of Volvo Cars, said: “The supply situation improved in the fourth quarter, but we expect the industry-wide semiconductor shortage. remains a limiting factor.
In addition, the company noted that preliminary retail sales figures for November show sales volumes of around 52,000 cars, down from last year due to building up a stock in transit.
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