PARIS/STOCKHOLM: Volvo Cars, whose Chinese parent Geely is considering an IPO of the Swedish carmaker, said it was on track for another sales record despite rising trade tensions, after second-quarter profit rose on strong demand for its SUVs.
Operating profit increased 29 per cent to 4.2 billion Swedish crowns ($474 million) in the three months to June 30, on 66 billion crowns in revenue, up by more than a quarter. The carmaker previously reported a 14.4 per cent increase in deliveries to 317,639 vehicles for the first half.
Acquired by Geely in 2010, the maker of sleek-but-sober premium cars such as the XC90 SUV and S60 sedan has notched up four straight record sales years, raising its game against larger rivals Mercedes and BMW. Geely has hired Citigroup, Goldman Sachs and Morgan Stanley to prepare Volvo for a stock-market flotation this year.
Pledging on Thursday to hit a fifth record in 2018, Chief Executive Hakan Samuelsson said the first-half performance left Volvo “well positioned for a new period of sustainable global growth”. The company recently opened its first US plant in Charleston, South Carolina. — Reuters
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