Volvo Cars managed to reverse its first-half loss from 2013 by posting SEK1.21 billion ($176.5 million) in operating profit in the same period this year. Volvo logged SEK577 million in losses in the first half of last year, but for the same period this year, increasing sales in China and gains in Europe allowed it to more than offset its weakness in the United States.
A lack of new models in the United States has caused Volvo to drop it sales in the country to 61,233 cars in 2013. Volvo saw its retail sales surged thanks to a double-digit growth in China as well as an 8-percent jump in sales in Western Europe, with the United Kingdom and Germany providing strong boosts.
Volvo, however, saw a slump in sales in Russia, whose economic growth is affected by sanctions imposed by western countries over its involvement in the Ukraine crisis.
The carmaker also grew its first-half revenue from SEK56.4 billion in 2013 to SEK64.8 billion this year. Volvo chief executive Hakan Samuelsson said in a statement that the carmaker’s first-half result is both “solid and encouraging."
He disclosed that Volvo posted a 9-percent jump in vehicle sales in the first seven months of 2014, and expects sales to grow "close to 10 percent" for the full year.
Samuelsson told Reuters that since Volvo grew at almost 10 percent in the first half, he expects the gains to continue at that level for the full year 2014. He said that Volvo will continue to grow faster than the Chinese market, “if at a slightly slower pace.” He quipped Volvo would be able to top 80,000 in car sales in China in 2014. [source: Volvo]