Volvo reports highest ever quarterly operating profit

Volvo reports highest ever quarterly operating profit

Volvo Cars has reported its highest ever quarterly operating profit of SEK4.2 billion (about RM1.9 billion) for the second quarter of 2018. This is an 28.6% increase compared to the same period last year, and it is largely due to higher global retail sales.

According to the Swedish carmaker, retail sales in Q2 2018 saw a 14.6% hike to 170,232 cars, contributing to a 26.9% rise in revenue to SEK66 billion (about RM30 billion). Operating profit margin for the period also rose slightly to 6.4% from 6.3% during the same period last year.

Across a wider timeline, Volvo recorded an operating profit of SEK7.8 billion (about RM3.6 billion) for the first six months of 2018, an increase of 15.7% compared to H2 2017 and its highest for such a period. Revenue for H2 2018 climbed 23.6% to SEK122.9 billion (about RM56 billion) with 317,639 cars sold in that time (+14.4%).

“These results confirm that Volvo Cars is now well-positioned for a new period of sustainable global growth. I expect us to achieve another year of record sales in 2018, as we aim to establish ourselves as a diversified, global mobility provider under our new vision Freedom to Move,” said Håkan Samuelsson, president and chief executive of Volvo Cars.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • tokmoh. on Jul 24, 2018 at 5:31 pm

    Volvo, Geely > all

    Like or Dislike: Thumb up 19 Thumb down 10
    • meister on Jul 25, 2018 at 9:41 am

      Bravo! Geely recouped all their money in Volvo

      Like or Dislike: Thumb up 14 Thumb down 2
      • Hilmi Hassan on Jul 25, 2018 at 10:02 am

        Profit kecil saja compared to even Peugeot. Boring car. Enug said.

        Like or Dislike: Thumb up 8 Thumb down 23
        • rally_fan (Member) on Jul 25, 2018 at 12:09 pm

          hilmi, sorry man.. but totally wrong comparison there. volvo cars is a tiny company compared to peugeot cars. that is massive profit for them considering they are a niche luxury brand with only a about 8 different models. Whereas peugeot is a mass market manufacturer with over 15 different models.

          Like or Dislike: Thumb up 13 Thumb down 1
          • Jepunis on Jul 25, 2018 at 1:10 pm

            May be this guy based on comparison of car at same level

            Like or Dislike: Thumb up 2 Thumb down 8
          • 4% OP? on Jul 25, 2018 at 2:19 pm

            rm1.9b for 170k cars sold about rm11k/car or 4% operating profit? something is wrong, meaning the net profit will be lower than 4%!!! if so, why not just keep the money in FD which is about 4.2%?

            Like or Dislike: Thumb up 2 Thumb down 6
          • Same L00 on Jul 25, 2018 at 3:06 pm

            Here you will see silly comments on connections like Volvo=Geely= Proton. These people used to think they are on Lotus when they are driving a Saga.
            The power of… Day dreaming

            Like or Dislike: Thumb up 1 Thumb down 12
          • Victoria on Jul 25, 2018 at 11:39 pm

            Even Bolihland TABUNG HARAPAN voluntary donation still cannot achieve RM 1.9 Billion collection every three (3) months despite having it most valuable assets ( 30 millions of its Population) and repeated silent calls.

            A big congrats to Geely and volvo cars especially the Swedish for working hard in achieving this ongoing historical record profit milestone.

            No hand feeds in the making for the swedes anyway.

            Like or Dislike: Thumb up 5 Thumb down 0
          • to 4% OP

            yeah something is wrong and it u.

            this is quaterly

            Like or Dislike: Thumb up 4 Thumb down 0
  • Volvo Geely Lotus > all

    Like or Dislike: Thumb up 17 Thumb down 4
  • Getting dull on Jul 24, 2018 at 5:38 pm

    One Volvo looks like the next Volvo … Getting boring ! The new Xc60 and s90 looks horrible esp from the rear

    Like or Dislike: Thumb up 9 Thumb down 23
    • Why u no complain about Audi & BMW?

      Like or Dislike: Thumb up 14 Thumb down 6
      • Martin Loo on Jul 25, 2018 at 3:13 pm

        Cos BMW and Audi already look ugly and dull nowadays from many angles comparing side by side with new Volvo

        That is why there were some silence complaints due to frustration.

        I believe many of them complaining are mostly Audi and BMW salesman whereby Audi sales people did not achieve sales target for many months ( sad, sad and frustrated)

        Like or Dislike: Thumb up 16 Thumb down 0
  • VolvoCar, Geely, P1, Mesidis, VolvoTruck, Lotus, Tesla > all

    Like or Dislike: Thumb up 14 Thumb down 3
  • seancorr (Member) on Jul 24, 2018 at 7:36 pm

    Patiently waiting to see their S/V40 vehicles to compete with the A3 and A Class sedan.

    Like or Dislike: Thumb up 1 Thumb down 3
    • Jonn Dol on Jul 25, 2018 at 9:56 am

      The SUVs are the cash-generators, but for the car enthusiasts, we’ll always look forward to the Volvo’s new sedans..

      Like or Dislike: Thumb up 2 Thumb down 5
      • Most of the world markets are having record sales on SUV unlike Malaysian who could not afford costlier SUVs but only interested and can afford on cheaper sedan design ( the old century three box design mentality still persist in Malaysian mind due to lower purchasing power)

        Like or Dislike: Thumb up 4 Thumb down 0
  • Kother on Jul 24, 2018 at 7:57 pm

    So little profit! Nothing to shout lah

    Like or Dislike: Thumb up 7 Thumb down 12
    • rally_fan (Member) on Jul 25, 2018 at 12:11 pm

      you must be out of your mind. rm1.9 billion profit in just the 1st qtr for what is essentially a small niche luxury car maker small?

      Like or Dislike: Thumb up 15 Thumb down 3
    • Shaun on Jul 26, 2018 at 12:01 am

      LOL

      Every Quarter is RM 1.9 Billion meaning yearly is RM 7.6 Billion.

      That a lot ..

      Not even Perodua sales combine with Proton sales can achieve such profit every quarterly.

      Even Mazda can only achieve operating profit of only RM 5.5 Billion for whole of 2018 despite selling 1.6 million cars globally. Meaning Mazda only achieve around RM 1.35 Billion profit every quarterly.

      So as someone mentioned getting FD rate at 4.2% , better for Mazda investment to be parked inside the bank too.

      Stupid analysis cos no Tax was recorded for FD investment inside the banks in parallel to profit derived from sales after tax.

      Like or Dislike: Thumb up 5 Thumb down 0
  • Bernard on Jul 24, 2018 at 8:46 pm

    That’s true in Scandinavia but not in Bolehland!

    Like or Dislike: Thumb up 12 Thumb down 3
    • Bolehland is so small, its not even on the maps. Err… where is Bolehland?

      Like or Dislike: Thumb up 18 Thumb down 2
      • Jimmy Suzuki on Jul 25, 2018 at 1:13 pm

        You are not Malaysian? Or volvo sales man?

        Like or Dislike: Thumb up 4 Thumb down 12
        • MYsian but not Bolehlander. MY dun allow dual citizenship.

          Like or Dislike: Thumb up 8 Thumb down 1
        • Really on Jul 25, 2018 at 3:05 pm

          Jimmy Suzuki

          Seems like you are a stupid Malaysian person

          The site is for constructive discussions .

          Let me know if you can earn RM 1.4 Billion in every three months otherwise do not be jealous and talk nonsense.

          Like or Dislike: Thumb up 16 Thumb down 1
          • Bernard on Jul 25, 2018 at 3:19 pm

            All sales man here very free at show room

            Like or Dislike: Thumb up 5 Thumb down 11
          • All sales man here veli busy. Volvo shot up +625.9%, Toyota +466%, Lexus +3,166%.

            Like or Dislike: Thumb up 3 Thumb down 0
  • Tok Moh on Jul 24, 2018 at 10:13 pm

    Volvo > Honda ex5, wave, future

    Like or Dislike: Thumb up 1 Thumb down 5
    • Jimmy on Jul 25, 2018 at 5:16 pm

      All very stupid sales man from other car brands commenting since they are very relax with NO sales.

      Like or Dislike: Thumb up 4 Thumb down 0
    • Tok Moh ( not original)

      Honda BRV ,HRV, City ,Civic, Accord and CRV >> Modenas CT 115 ( yak yak fai ) – simply bark.

      Like or Dislike: Thumb up 5 Thumb down 0
  • Volvolution on Jul 25, 2018 at 2:19 am

    Even the Swedes themselves wouldn’t believe Volvo can become like it is today when Geely bought it from Ford. They probably thought Volvo would follow the footsteps of Saab with the Chinese in-charge. But Geely was smart to see the potential of the brand and provided the much-needed financial backing without meddling too much in the management of the company.

    Like or Dislike: Thumb up 16 Thumb down 2
    • Geely knows how to turn companies around. Geely is perfect partner for P1.

      Like or Dislike: Thumb up 18 Thumb down 1
  • azrai on Jul 25, 2018 at 8:15 am

    Next year, Proton’s turn.

    Like or Dislike: Thumb up 8 Thumb down 2
  • Mikey on Jul 25, 2018 at 8:24 am

    Mr Li of Geely must be smiling for investing into Volvo when they reported their highest ever quarterly profit of about RM1.9 billion for the 2nd quarter of 2018.
    Looks like his ROI is paying him/Geely handsomely.

    Like or Dislike: Thumb up 8 Thumb down 3
  • Commenter on Jul 25, 2018 at 11:36 am

    Sold Proton to Geely is the smartest move for Proton. Look at Geely portfolio, all doing great, they will not screw up Proton to make their perfect portfolio ruin. There’s no future can be see for Proton if not JV with Geely, while the French & VW have their own hanky panky too. If standalone lagi la, but someone still want it totally national own, just to feed underperform Maha Cronies.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Proton clowns here never cease to amaze you. Profit from Volvo, Proton claim credit. That Li guy bought shares in Merz, Proton claim credit.

    We don’t see Peodua claim credit when Toyota being the largest car manufacturer for another year. We don’t see VW owner claim anything when Bugatti launches Chiron nor we see Renault claim credit when Nissan launches GTR.

    Like or Dislike: Thumb up 2 Thumb down 7
    • Correct, the same why we dun see P2 sharing the responsibility for Toyota waterfall sales or Scania AB CEO must be remorseful for VW dieselgate, nor Renault be shameful for Datsun GO zero ncap star… oh wait that cuz Renault oso got zero ncap star with their Kwid. Such clowns that never admits these never cease to amaze readers.

      Like or Dislike: Thumb up 15 Thumb down 0
  • junkard on Jul 25, 2018 at 3:02 pm

    Easy, becoz those cars are similar junks, deswai not worth any credit.

    Like or Dislike: Thumb up 1 Thumb down 6
    • Khalid on Jul 25, 2018 at 5:21 pm

      You mean Perodua cars are JUNKS !!

      To the eyes of Jeremy Clarkson, All Perodua are junks .
      Never had any good reviews .

      Personally , I feel Perodua is a junk too not worth mentioning.

      Like or Dislike: Thumb up 4 Thumb down 0
    • Kelvin on Jul 25, 2018 at 10:46 pm

      If you say Junks how could these manufacturers earn many time more profit compare to Perodua.earnings.

      So which is more junk then?

      Like or Dislike: Thumb up 5 Thumb down 0
 

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