Volvo Cars, a premium car maker, has reported a strong 27.7 per cent increase in operating profit in 2017, earning a record SEK14.1 billion ($1.746 billion) compared to SEK11.0 billion ($1.367 billion) in 2016.
The company sold 571,577 cars globally during the year.
Net revenue for the period increased 16.6 per cent to SEK210.9 billion ($26.18 billion) compared to SEK180.9 billion ($22.46 billion) in 2016, while the operating profit margin improved from 6.1 per cent in 2016 to 6.7 per cent in 2017.
The results underline the comprehensive transformation of Volvo’s finances and operations in recent years, positioning the company for its next growth phase.
Global sales rose 7.0 per cent during the year, underpinned by a 25.8 per cent increase in China, Volvo Cars’ largest individual market.
For Middle Eastern markets, despite sales across all manufacturers in the premium segment dropping by 12 per cent, Volvo Cars has retained its position with 1,196 units sold across the region.
The XC60 became Volvo Cars’ main brand driver and best-selling model followed by XC90. These two models represented 63 per cent of Volvo Cars sales. The XC60 will continue to be the primary force driving Volvo Cars’ brand momentum in the SUV segment, while the S90 saloon & V90 estate will anchor Volvo’s position in the premium D segment.
With order numbers from Europe and the Asia-Pacific region indicating that the XC40 is very well received, its arrival in the Middle East is expected to further boost Volvo Cars’ sales in the region.
“The XC40, our first ever small premium SUV completes our global SUV line-up and takes the brand into a new, exciting direction. It will broaden our brand’s appeal to include a completely new set of potential customers, especially within the Middle East,” said Jesus Fernandez de Mesa, managing director of Importers EMEA.
“Our business has transformed completely since 2010 and we are now gearing up for a phase of global, sustainable growth,” said Håkan Samuelsson, president and chief executive. “We are investing in all parts of our organization and have laid out clear strategies around electrification, autonomous drive and connectivity.” – TradeArabia News Service
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