XC90 lifting of Volvo Cars – Göteborgs-Posten

The new generation of the Volvo XC90 in the production of Torslandafabiken in Gothenburg. Stock Photography. Photo: Björn Larsson Rosvall, TT

Volvo Cars turned a loss into a profit of more than SEK 3 billion, according to the company’s first quarterly report in six years. Sales success for the XC90 explains the rise in profit, according to CEO Hakan Samuelsson.

Later this year expected sales of the new S90- and V90 models also start contributing and making sales growth sustainable long-term, according to Volvo Chief.

Both net sales and operating profit are expected to increase this year compared to last year, with help from the increase in volume, according to Samuelsson. This despite the fact that he simultaneously flags for the new models launch costs for the year are expected to eat up some of the results.

As a listed

The quarterly report is the first from Volvo Cars since Chinese Geely Holding bought Volvo Cars from Ford Motor in 2010. Previously, Geely content with presenting the annual and interim figures of Volvo Cars.

– we have said that we should act as if we were listed and have better transparency than what we really are guilty, says spokesperson Stefan Elfström.

The positive trend in sales seen in all major markets. In both Western Europe and China lifted sales by over 13 percent, to 49,305 and 19,636 cars in the first quarter.

In the Swedish market recorded a sales boost of almost 14 percent to 16,047 vehicles, while in the United States was a boost of more than 19 percent to 16,361 cars.

One million electrified vehicles

the same trend is seen in the monthly figures of sales that came earlier this week, where the month of April this year became the eleventh consecutive month of increased sales globally. So far this year, car sales increase for Volvo at 11.8 percent.

The operating margin also raises significantly with volumes up to 7.5 percent in the first quarter. That compares with an operating margin of zero in the first quarter of 2015.

Volvo Cars hanging even on electric car trend, with its goal of selling one million of what the carmaker describes as electrified vehicles by 2025, according Elfström.

It is in the first place so far on hybrids and so-called plug-in hybrids. A pure electric vehicle, with no internal combustion engine, Volvo is expected to first in three years.

The Facts: Volvo Cars interim figures

Q1, 2016 Q1, 2015 Net sales 41,757 33,651 operating income 3,145 -11 Net income 2,069 -241 operating margin, percent 7.5 0

All the numbers in the table presented in millions except operating margins , indicated in percent.

Source: Volvo Cars