Volvo, sensing the environment of the car, a system of sensors
Cologne, October 27, 2022
- Volvo Cars in Q3 2022, strong demand despite headwinds
- Sales fell 8 percent to 138,000 vehicles (Q3 2021 150,000 vehicles)
- Sales increased by 30 percent to SEK 79.3 billion (EUR 7.25 billion)
- Operating profit (EBIT) of SEK 2.1 billion (EUR 191.98 million, Q3 2021 SEK 3.3 billion), EBIT margin of 2.6 percent (Q3 2021 5.5 percent), EBIT margin without accounting for joint ventures and associated companies of 4.4 percent (Q3 2020 ) percent)
- Adjusted earnings per share SEK 0.11 (EUR 0.01; Q3 2021 SEK 0.86)
- The Electric Recharge version accounted for 25.1 percent of total sales in Q3 – of which 7.4 percent was electric.
Swedish automaker Volvo Cars announces its financial results for the third quarter of fiscal year 2022 on Thursday, October 27, 2022. The company reported an operating profit (excluding joint ventures and associates) of SEK 3.5 billion (EUR 319.97 million) and a profit margin of 4.4 percent – a result that reflects the headwinds facing the automotive industry worldwide. The full third quarter interim report can be found online.
The company remains focused on implementing its strategy: new #Volvo EX90 was introduced, all electric #SUV A flagship that marks the beginning of a new era for Volvo Cars. The Swedish premium carmaker will be presenting a new all-electric model every year in the future – with the aim of offering only all-electric cars by 2030.
“Global macroeconomic uncertainty impacted our performance in the third quarter,” said Jim Rowan, President and CEO of Volvo Cars. “However, we are confident that with our dynamic and agile organization, strong financial position and sufficient liquidity, we will manage the ongoing challenges. We are on an exciting journey to make our company a pure electric vehicle brand by the end of this decade and by 2040. #carbonneutral to arrive We will continue to focus on this strategic direction.”
More sales despite falling sales figures
While sales in the third quarter of 2022 decreased by 8 percent compared to the same period last year, sales increased by 30 percent during the same period. This underlines the strength of the Volvo brand and underlines the company’s position in terms of price positioning and the unwavering strong demand for Volvo SUVs – above all for the electrified Recharge models.
The lower amount from July to September 2022 also affected the company’s EBIT: excluding joint ventures with related companies, it amounted to SEK 3.5 billion (EUR 319.97 million), which corresponds to an EBIT amount of 4. corresponds to 4 percent.
Higher raw material costs, impulse purchases of semiconductors to fill shortages and increased equipment costs contributed to lower operating income. The EBIT rate including joint ventures and related companies reached 2.6 percent in the reporting period.
The production rate continued to improve in the third quarter. However, unforeseen factors such as power outages and the Covid-19 lockdown in China slowed the expected speed of Volvo Cars on the road to legalization. Provided there are no further disruptions in supply, the improved production rate is expected to continue through Q4 and into 2023.
For the second half of the year, Volvo Cars expects an increase in production and sales compared to the same period last year. For 2022 as a whole, the company expects total volumes to be slightly lower than in 2021, assuming no further disruption to the supply chain. Retail volume will be at the same level.
Increasing demand for electric vehicles and registration
Demand for powerful Recharging models remains strong: sales of a variety of electric models rose by 87 percent in the third quarter of 2022 compared to the same period last year. That’s how they clean #electric cars it now accounts for 7 percent of total sales.
In September 2022 alone, Volvo Cars sold more than 6,000 fully electric cars, which corresponds to more than 12 percent of all sales. In the same month of the previous year, this ratio was still 3.5 percent. For this year as a whole, the company continues to expect double-digit share.
Also of #Online Distribution continued to grow: the number of subscribers under the Care by Volvo brand increased by 67 percent in the third quarter compared to the same period last year. In established markets, this corresponds to a share of 6 percent of total sales, compared to 8 percent in the same period, although this is due to the priority of other sales channels.
Volvo Cars Efforts #CO2 The downsizing of its cars also went according to plan: In the first 9 months, CO2 emissions were 11.8 percent below the comparative value of 2018. That’s right. #Company well on its way to reducing emissions per vehicle by 40 percent by 2025.
Enhanced Supply Chain
Volvo Cars remains focused on managing macroeconomic challenges and the ongoing turmoil. With significant improvements in operational efficiency throughout the company, productivity should increase further. To improve the resilience of the supply chain in the long term, #localization of parts, expanding the supplier base for key components, used supply chain analysis to create more transparency and speed plans for vertical integration of electric motors, inverters and batteries.
Further cooperation ensures Volvo Cars better access to cheap and sustainable raw materials – with a focus on the most important materials such as lithium and nickel.
Full details of the company’s financial results are available at this link and will be presented at a press conference starting at 10am CET which here can be traced.
* The exchange rate on which the current half-year figures are based, 1 euro is equal to SEK 10.9406, values in brackets refer to comparative values from the previous year.