STOCKHOLM, Aug 20 — Swedish automaker Volvo Cars, owned by China’s Geely, reported yesterday a rise in first half profits even as sales tumbled in its biggest market, China.
Net profit more than tripled to 877 million kronor (RM229.964 million), while turnover climbed by 12 per cent to 75.2 billion kronor.
Operating profit surged by more than 70 per cent to 1.66 billion kronor, thanks to a strong US currency and robust sales of Volvo’s SUV model XC60.
But net income attributable to owners of the parent company dropped by 60 per cent to 173 million kronor.
Volvo’s overall car sales in terms of units rose by 1.4 per cent to 232,284 during the first half.
The strongest sales growth was registered in Sweden and western Europe, while they remained stable in the United States and declined in China, by 1.2 per cent, and the rest of the world, including Russia.
Volvo went through several dark years before returning to profit in 2013. In 2014, it beat its sales record from 2007, selling almost 466,000 vehicles.
CEO Hakan Samuelsson told Swedish news agency TT the company expects to sell 500,000 cars this year.
The number of Volvo employees has risen by 10 per cent in the past year, to 28,000 worldwide.
Despite its economic slowdown, Volvo plans to boost its presence in China and has acquired 50 per cent of three joint ventures from parent company Geely: two assembly plants and one research and development centre.
Geely paid $1.8 billion to buy Volvo from US carmaker Ford in 2010. — AFP
