Shares of Volvo Automobiles rose sharply on Thursday after the corporate reported a bounce in annual working revenue for the second quarter.
By 9:04 a.m. London time shares had rise by 7.11%. Core working revenue for the quarter got here in at 8.2 billion Swedish kronor ($776 million), 28% increased than in the identical quarter a 12 months earlier, the corporate stated in a press release.
This was the very best ever determine for one particular person quarter, the carmaker stated. The core determine excludes joint ventures and associates.
World retail gross sales rose 15% year-on-year within the quarter, climbing to 205,400 vehicles, the carmaker stated, noting that the bounce was pushed by a hike in gross sales of each hybrid and totally electrical vehicles.
Altogether, electrical automobiles and hybrid fashions accounted for 48% of the corporate’s world gross sales within the quarter, the corporate stated.
Volvo has been doubling down on the EV market amid heating competitors, as a bevy of Chinese language auto makers push closely into the sector. Tensions round increased tariffs on EVs imported from China have come to a head in current months, with the U.S. mountaineering duties on the vehicles, whereas the European nations seem divided on easy methods to deal with the problem.
Volvo Automobiles’ income dipped barely within the second quarter, coming in at 101.5 billion Swedish kronor from 102.2 billion Swedish kronor over the identical interval of final 12 months.
“We delivered a robust second quarter efficiency in 2024 with file underlying profitability, demonstrating our potential to create worth regardless of a fancy geopolitical and financial surroundings,” Volvo Automobiles CEO Jim Rowan stated in a press release.
Within the first quarter of 2024, Volvo Automobiles had reported a 2% year-on-year decline in income. First-quarter working revenue had are available in at 6.8 billion Swedish kronor, whereas retail automobile gross sales amounted to 182,687.