Sweden-based Volvo achieved operating earnings of 640 million Swedish crowns ($103 million) in the first three months of 2011, reflecting an increase of 280 million crowns from the same period in 2010, the company disclosed as part of its first official after it was obtained by Zhejiang Geely of China.
In 2010, the Chinese company, which also owns Geely Automobile Holdings Ltd., purchased Volvo from Ford Motor Co. and has revealed ambitious expansion plans for the Sweden-based vehicle manufacturer, not least in China.
During the worldwide financial crisis, Volvo experienced a massive loss but has regained its sales strongly during the past year with the help of the lucrative demand for its XC60 crossover vehicle model.
The company stated that it had seen volumes grow in all markets. Volvo revealed that sales are forecasted to continue growing this year. In fact, the company would increase production at its Torslanda factory in Sweden and its Gent plant in Belgium.
Last month, Vice Chairman Hans-Olov Olsson at Volvo gave a more detailed forecast, stating that the company, which has started production in the emerging market in China, expected to sell 450,000 vehicles this 2011 compared to 380,000 cars in the previous year.
Moreover, Volvo struck a cautious note, stating that an uncertain development of raw material prices and the volatility in exchange rates might affect its results going forward.