Volvo Cars Misses Second-Quarter Earnings Estimates As Revenue Falls To SEK 77.67 Billion On China Slump And EV Costs
Volvo Cars reported second-quarter revenue of SEK 77.67 billion and operating income of SEK 826 million, both missing estimates as retail sales declined 6%.
Profitability was pressured by intense competition, higher costs from ramping up a new electric SUV, and a sharper-than-expected drop in China, where management has chosen premium positioning over discounting. The company said demand for its EX60 model is outstripping supply, maintained a production target of 40,000 units for the year, and projected a stronger second half.
From the sources (14 posts)
@firstsquawkVolvo Car Q2 Earnings: - Revenue: SEK 77.67B (est SEK 82.58B) - Operating Income: SEK 826M (est SEK 1.28B) - EBIT Margin: 1.1% (est 1.42%) - Retail Sales: -6%
@firstsquawkVolvo Cars CEO says there is no expected further delay to the Košice factory in Slovakia, adding that Ghent operations will not affect Slovakia plans and expressing confidence in plant utilisation.
@firstsquawkVolvo Cars CEO says the stronger-than-expected decline in the Chinese market has had a negative impact on the company’s financial results.
@firstsquawkVolvo Cars’ Chief Commercial Officer says the U.S. market is showing some positive signs of recovery but remains challenging due to heavy tariffs and changes to electric vehicle regulations.
@firstsquawkVolvo Cars says it is prioritizing premium brand positioning in China over discount-driven sales growth, acknowledging that the approach is hurting volumes.
@firstsquawkVolvo Cars’ commercial chief says a new commercial performance program has started in Germany and will be expanded across key European markets, with the company expecting a major impact on future performance.
@firstsquawkVolvo Cars CFO says lower indirect costs compared with last year are helping mitigate external market pressures.
@firstsquawkVolvo Cars says EX60 demand is outpacing production, while the company keeps its target of manufacturing 40,000 units this year.
@firstsquawkVolvo Cars expects European players facing weaker sales in China to increase their focus on the European market.
@firstsquawkVolvo Cars CEO says there is no current agreement for Geely to use SPA3, but the option remains open, while Volvo is adopting some Geely vehicle platforms in China.
@firstsquawkVolvo Cars says it plans to maintain its 20% stake in Polestar, with no intention to increase or reduce its holding.
@businessVolvo Car second-quarter earnings were weaker than expected as intense competition, higher costs and expenses related to the production ramp-up of a new fully electric SUV weighed on profitability.
@businessVolvo's CEO pushes back against White House senior trade adviser Peter Navarro’s criticism of Chinese automakers
@reutersVolvo Cars sees stronger second half despite steep China decline, rising costs