Losses continue to shrink for Volvo Cars
Volvo Cars posted a much improved third quarter result on Monday, losing only $135 million compared with the $458 million the company lost a year ago.
Revenue for the Swedish carmaker, which moved a step closer last week to being sold by US-based Ford to Geely of China, was also up to $3.0 billion from last year’s third quarter revenue of $2.9 billion.
The result is the best for Volvo Cars this year and continues the trend of shrinking losses.
At the same time, production at Volvo is on the rise, with 77,000 vehicles coming off the assembly lines in the third quarter, an increase of 5,000 from the corresponding quarter last year.
During the fourth quarter, production is expected to increase to 95,000 vehicles, an increase of 27,000, according to Ford.
Volvo’s US-based parent, which also presented surprisingly strong net income of nearly $1 billion on Monday, said Volvo’s improved results were due to cost savings, positive currency effects, higher volumes, and better product mix.
“The Ford team delivered another solid quarter of results with strong contributions from all our business regions,” said Ford chief financial officer Lewis Booth in a statement.
“Positive cash flow, a stronger balance sheet and a third quarter operating profit are evidence that Ford is meeting the global economic challenges.”
The report contained no new information, however, about Ford’s ongoing negotiations with Geely for the purchase of Volvo, instead merely confirming that the Chinese automaker is the “preferred bidder” in discussions which are “ongoing” regarding the “possible” sale of Volvo Cars.
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Revenue for the Swedish carmaker, which moved a step closer last week to being sold by US-based Ford to Geely of China, was also up to $3.0 billion from last year’s third quarter revenue of $2.9 billion.
The result is the best for Volvo Cars this year and continues the trend of shrinking losses.
At the same time, production at Volvo is on the rise, with 77,000 vehicles coming off the assembly lines in the third quarter, an increase of 5,000 from the corresponding quarter last year.
During the fourth quarter, production is expected to increase to 95,000 vehicles, an increase of 27,000, according to Ford.
Volvo’s US-based parent, which also presented surprisingly strong net income of nearly $1 billion on Monday, said Volvo’s improved results were due to cost savings, positive currency effects, higher volumes, and better product mix.
“The Ford team delivered another solid quarter of results with strong contributions from all our business regions,” said Ford chief financial officer Lewis Booth in a statement.
“Positive cash flow, a stronger balance sheet and a third quarter operating profit are evidence that Ford is meeting the global economic challenges.”
The report contained no new information, however, about Ford’s ongoing negotiations with Geely for the purchase of Volvo, instead merely confirming that the Chinese automaker is the “preferred bidder” in discussions which are “ongoing” regarding the “possible” sale of Volvo Cars.
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