STOCKHOLM (Reuters) – Automaker Volvo Cars reported on Wednesday higher second-quarter profits but said it expected full year retail deliveries to be lower or on par with 2021 as production sought to pick up pace amid an easing of supply chain issues.
The Sweden-based carmaker’s quarterly operating profit rose to 10.8 billion Swedish crowns ($1.06 billion) from 4.8 billion a year ago as accounting effects from the listing of high-performance automaker Polestar gave a boost.
Operating earnings for the core business at Volvo Cars, majority owned by China’s Geely Holding, reached 4.6 billion in the quarter.
Supply problems, above all a global shortage of semiconductors, has squeezed output and retail sales in recent quarters, but Volvo said it was seeing a “marked improvement” in the stabilisation of its supply chain.
“Provided this normalisation continues, the company expects production to progressively increase in the coming months,” the company said.
“As a result, Volvo Cars expects its wholesale volumes for 2022 to be better than in 2021. However, due to the time lag between production and retail deliveries, those improvements are not expected to result into an increase in retail sales during the calendar year.”
($1 = 10.2089 Swedish crowns)
(Reporting by Helena Soderpalm; editing by Niklas Pollard)
