Volvo Cars expects strong demand in 2024 – 04/24/2024 at 09:48

Swedish carmaker Volvo Cars VOLCARb.ST said on Wednesday it expects strong demand for its cars this year after sales rose in the first quarter, although operating profit came in below expectations due to lower revenue and losses from the Polestar.

Operating profit for the first quarter fell to 4.7 billion Swedish crowns (405.54 million euros), from 5.1 billion Swedish crowns a year ago, due to a decline in revenue due to a negative exchange rate and lower contract manufacturing sales. the group said. .

This result is lower than the consensus referred to by JPMorgan, which expected an operating profit of 5.93 billion crowns.

However, adjusted operating profit, which excludes joint ventures, associates and unique products, increased by 8% to SEK 6.8 billion.

“We expect demand for our vehicles to remain strong in the coming quarters, based on our forecast for sales volume growth of at least 15% for the full year,” said Jim Rowan, CEO of Volvo, in a press release.

Jim Rowan said he has confidence in the company’s ability to generate a large amount of money on electric vehicles and continue on the path to profit despite the challenges facing the industry.

(Reporting by Marie Mannes; French version by Dimitri Rhodes, editing by Blandine Hénault)