STOCKHOLM — Volvo Automobiles stated chip constraints have been regularly enhancing after the automaker posted a fall in quarterly revenue regardless of robust demand for its autos.
First-quarter working revenue fell to six billion crowns ($607.4 million) from 8.4 billion a yr in the past, the corporate stated in a press release on Thursday. EBIT margin was 8.1 %, down from 12.3 % throughout the identical interval final yr.
The distinction within the EBIT is as a result of Volvo benefited from two giant monetary one-offs within the first quarter of 2021 that added 3 billion crowns ($304.7 million) to its books, Volvo Chief Monetary Officer Bjorn Annwall informed Automotive Information Europe.
If these have been excluded, the EBIT margin for the primary three months of 2022 would have overwhelmed the 2021 determine, he stated.
A worldwide scarcity of semiconductors compelled Volvo to halt manufacturing within the first quarter.
The automaker warned that the provision drawback was anticipated to proceed within the second quarter.
Annwall stated Volvo has seen constructive indicators, together with a extra constant provide of chips, that point out the scarcity will enhance within the second half.
“The semiconductor scarcity has clearly taken out a whole lot of quantity however the business has improved its pricing self-discipline because of the scarcity of provide” to assist offset the hit, he stated in an interview.
That very same tactic is getting used to minimize the monetary hit attributable to larger prices for uncooked supplies, vitality and freight for Volvo, Annwall stated.
Volvo, majority owned by China’s Geely Holding, maintained its forecast for 2022 of marginal year-on-year development in deliveries.
The corporate stated earlier this month that its automotive gross sales fell 20 % within the first quarter to 148,295 automobiles.
Volvo had hoped to be on monitor to construct 900,000 automobiles this yr, which might be a quantity of about 225,000 a month, however that purpose was set earlier than the pandemic, the chip scarcity and the warfare in Ukraine.
Annwall stated Volvo continues to focus on promoting 1.2 million automobiles a yr by 2025.
Volvo in February suspended all gross sales, service and manufacturing in Russia, which final yr accounted for about 3 % of its internet group gross sales.
Reuters contributed to this report