Volvo Q3 net profit halved but car sales rise

Stockholm: China-owned Volvo Cars said on Friday its third-quarter net profit was halved compared to a year ago, citing higher costs for new vehicle models and higher tariffs.
Net income for the period was 1.14 billion kronor ($125 million), compared to 2.5 billion kronor a year ago.
The carmaker said revenue in the quarter rose 17.6 per cent year-on-year to 56.8 billion kronor. “Looking ahead, the ongoing trade tension is worrisome for the auto industry and for us,” chief executive Hakan Samuelsson said, referring to the row over import duties between the United States, China and the European Union.
Volvo Cars has in recent years set up production in markets where it sells its vehicles, which puts the firm “in a better position to partly mitigate the effect of the tariffs already imposed,” he added.
The carmaker said it sold 154,914 cars during the July-to-September period, up 14 per cent compared to 2017. — dpa