Volvo Cars has reported an operating profit of SEK14.2 billion for 2018, an increase of 0.9 per cent compared with 2017.
Net revenue increased strongly by 21 per cent to SEK252.7 billion, on the back of the company’s best ever annual sales of 642,253 cars, an increase of 12.4 per cent compared to 2017.
The operating profit margin for the full year was 5.6 per cent, down from 6.7 per cent last year.
“This result is in line with our expectations, but does not totally live up to our longer-term ambitions. Revenue growth and sales in 2018 were healthy, but profitability was affected by external factors such as tariffs and increasing price competition in several markets,” said Håkan Samuelsson, president and chief executive.
“For 2019, we see another year of volume growth as we continue to benefit from our strong product program and increased capacity.,” he added. “But we have to be realistic and acknowledge that margins will remain under continued pressure.”
Operating profit for the fourth quarter was SEK4.5 billion, an increase of 25 per cent compared to the same period last year.
Net revenue in the fourth quarter increased by 20 per cent to SEK73.0 billion, as retail sales rose 7.3 per cent to 169,700 cars. The operating profit margin for the period was 6.2 per cent, up from 5.9 per cent the same period last year.