Q2 revenue 101.5 bln crowns vs 102.2 bln (Il Sole 24 Ore Radiocor) - Stockholm, 18 Jul - Volvo Cars, the Swedish car maker owned by the Chinese group Geely, said that in the second quarter of 2024 basic earnings per share rose to 1.79 crowns from 1.12 crowns a year earlier, while revenue slipped to 101.5 billion crowns from 102.2 billion.

The decline in revenue was due to reduced income from contract manufacturing and a normalisation of sales to rental companies. Volvo Cars' core revenues from operations during the quarter, excluding income from contract manufacturing, remained stable.

Global retail sales rose by 15% to 205,400 cars.

EBIT, excluding joint ventures and associates, totalled 8.2 billion crowns, the highest-ever in a single quarter and an increase of 28% versus the same period in 2023.

Core EBIT margin reached a record high of 8.1%, versus 6.3%.

"This improvement in the underlying profitability was a result of the company's focus on pricing discipline, internal cost control and sustained growth in sales," Volvo said.

For 2024, Volvo Cars expects retail sales to grow by 12-15%, provided there are no major disruptions.

"Macroeconomic and geopolitically complex headwinds are the inescapable business realities of today, and despite these many challenges, Volvo Cars is positioned for further growth.

Its operational fundamentals are strong, it is well positioned for continued future growth and the company still expects cash flow to be neutral for the full year 2024 and 2025," it added.

From 2026 onwards, Volvo Cars expects to deliver "strong cash flows as the scale of investments declines and it starts to reap the long-term benefits of its strategy with higher revenue and profitability.".

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(RADIOCOR) 18-07-24 11:15:32 (0288) 5 NNNN