Volvo Cars Q2 Operating Profit Rises

(RTTNews) - Swedish luxury auto major Volvo Cars AB (VLVOF) said Thursday that its operating profit for the second quarter rose by 60 percent to 8.0 billion Swedish kronor. The company's operating profit or EBIT, excluding joint ventures and associates, grew 28 percent to 8.2 billion Swedish kronor.

The company also said its corresponding core EBIT margin reached 8.1 percent versus 6.3 percent last year, as a result of its focus on pricing discipline, internal cost control and sustained growth in sales.

The company's basic earnings per share for the quarter increased to 1.79 kronor from 1.12 kronor last year.

Volvo Cars' revenue for the quarter came in at 101.5 billion kronor, compared to last year's 102.2 billion kronor. The company attributed the slight decline to reduced income from contract manufacturing and a normalization of sales to rental companies.

However, Volvo Cars' core revenues from operations during the quarter, excluding income from contract manufacturing, remained stable.

During the quarter, global retail sales rose by 15 percent to 205,400 cars, driven by the performance of electrified cars - both plug-in hybrids and electric cars.