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4/25/2019, 8:04 AM (Source: TeleTrader)
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Volvo Cars' net income drops 21.6% in Q1

Swedish automaker Volvo Cars said in a report on Thursday that its net income in the first quarter of 2019 fell 21.6% annually to 2 billion Swedish kronas ($110 million). At the same time, net revenue increased 10.7% to 62.91 billion kronas.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) slid 1.5% annually in the first three months of this year to arrive at 6.76 billion kronas. Gross margin was slightly lower than in the same period a year ago, down from 20.1% to 19.1%, while the carmaker added 14.6% in net cash, which stood at 11.91 billion kronas.

Total retail sales jumped 9.4% to 161,320, with performance in China lagging behind Europe and the United States.

"The continued growth in Volvo Car sales which we have seen in the first quarter clearly shows the quality of our product portfolio. We grew in all regions gaining market share while revenue rose faster than sales due to our product mix. The decrease in operating income and margin is a result of the increased pricing pressure, especially in the Chinese market, and increasing costs related to the new trade tariffs our industry currently faces," said Hakan Samuelsson, CEO of Volvo Cars.

Breaking the News / NI