Manufacturers
of Volvo cars are now finally out of the woods. The Volvo Car Group reported a
full-year operating profit of 1,919 million Swedish Kroner (MSEK) (Approx. Rs 1825 crore ) for 2013 and will
stay in the black and grow sales in 2014. This was stated by Håkan Samuelsson, President
and CEO, Volovo Car Group, a press communication. Retail sales are forecast to
grow by “a good” 5pc in 2014, Samuelsson added.
The
financials in the Financial Report January-December 2013 refer to the
consolidated business result of Volvo Car Group. This includes Volvo Car
Corporation, its parent company Geely Sweden AB, and all its subsidiaries
In
2013, Volvo Cars continued its transformation, increasing retail sales for the
year by 1.4 per cent to 427,840 cars. Revenues were to the tune of 122,245 MSEK
(Rs 116257 crore approx.) against 124,547 MSEK (Rs 118443 crore approx.)
recorded a year earlier. Net income stood at 960 MSEK (Rs 913 crore) as against
a loss of the -542 MSEK (Rs 515 crore approx.) a year back.
“We
are delivering on the plan we set out four years ago: focus on profitability,
revitalise the brand, reinforce our product strengths and leverage our
potential and position in China,” said Samuelsson. “2013 was a year of
groundwork for Volvo Cars, successfully preparing the way for the future. This
year our total sales are forecast to increase and we will – with the XC90 –
reveal the first product of a portfolio that will delight our customers, paving
the way for the company’s future growth.”
In China, Volvo Cars will build on a strong
sales performance in 2013, when sales rose 45.6 per cent to 61,146 cars. New
models like the S60L and the sales start of the V40 Cross Country as well as a
further expansion of the dealer network will support Volvo Cars’ continued
growth.
In
the US, Volvo Cars now has an improved customer offer with a line of fully
refreshed S60, XC60, XC70 and S80 models, the sales start of the V60 sports
wagon and the roll-out of the highly efficient Drive-E powertrains. Market
circumstances in Europe are expected to remain challenging, but Volvo Cars aims
to retain its market share in the region, the company stated.
Picture of Håkan Samuelsson, President and CEO, Volvo Car Group/ courtesy Volvo Cars