Volvo Cars Reported A Loss In The First Half Of The Year
Volvo Cars have published its first-half results, noting that the results were affected by the coronavirus pandemic and its impact on the global economy. Thus, the operating loss of Volvo Cars, which has been owned by China's Geely Holdings since 2010, amounted to $110.3 million for the first six months of 2020.
In 2019, the company made an operating profit of $613 million for the same period. Volvo Cars' revenue for the reporting period fell by 14% to $12.4 billion. Sales fell by 20.8%, with 269,962 vehicles sold.
According to the manufacturer, in the first quarter, sales fell around the world. Sales growth in China started in the second quarter, offsetting losses in the first three months. And in June, sales began to recover in most markets where Volvo Cars products are available. A very significant increase in the first half of the year — by 79.8% — showed the demand for hybrid cars that it produces under the Volvo Recharge brand (each of the company's regular models has a hybrid version).
While sales fell in absolute numbers during the first half, Volvo Cars took market share in China, the US and Europe, where Germany was among the strongest performing markets. It also saw a strong increase, of 79.8 per cent, in demand for its chargeable plug-in hybrid models sold under the Volvo Recharge brand, while it experienced a strong growth in consumer interest in its online sales channels as well.
While making forecasts for the full year, Volvo Cars management noted that if the market recovers in line with expectations, "sales will return to the level that was in the second half of 2019, and we are very much looking to reach the same level of profit and financial flows."