Increased profit for Volvo Cars

Volvo Cars reports continued increased profit. During the fourth quarter, operating profit rose to SEK 5.3 billion, compared with SEK 4.5 billion in the same quarter last year.

Revenue rose from SEK 73 billion to SEK 79.2 billion, while the number of vehicles sold during the quarter rose from 169 700 to 197 750, with China being by far the largest market.

For 2020, the management, with CEO Håkan Samuelsson at the forefront, expects increased sales and rising profits compared with 2019. But at the same time be warned about the effects of the corona virus that will have an impact on Volvo's extensive operations in China, the company writes in the financial statements.

The results from the first month of the year show that the virus outbreak had a negative effect on car sales in China. Volvo Cars fell 16 percent in January as a result of holidays and the corona virus that has kept Chinese customers away from the car halls, writes Dagens industri.

In total, 45,752 new Volvo cars rolled out in January, which is a decrease of 9.7 percent compared to the same period last year. In January, where Volvo has previously been a winner despite a declining total market, January was a month when both holidays and the corona virus drew down the car dealership. Volvo Cars fell 16 percent.

In the financial statements, CEO Håkan Samuelsson writes that 2020 will be the year of electrification. As previously announced, Volvo is considering separating the business with fossil-fueled cars and possibly merging it with the owner Geely's business. Subsequently, Volvo can concentrate entirely on electric cars, according to Samuelsson.