June 3, 2023

Mechanic Escape

Built for the human race

Geely’s Volvo Cars books record revenue and profit for 2021

Geely’s Volvo Cars and trucks unit today documented history income and financial gain for whole yr 2021 despite “persistent ingredient supply shortages”.

Earnings rose to SEK282bn from SEK 262.8bn in 2020. Functioning cash flow was up to SEK20.3bn from SEK8.5 bn in Covid-19-impacted 2020. Operating margin was 7.2% nevertheless the automaker did not offer a comparison.

“”Despite persistent element supply shortages in the auto market, we greater marketplace share globally and delivered all time substantial revenue and profitability,” mentioned CEO Hakan Samuelsson.

Even so, preliminary info for the fourth quarter of past 12 months showed earnings dipped 6% to SEK80.1bn.

“Demand and buy ingestion remained potent, but generation was restrained,” Volvo mentioned in a assertion.

“The unfavorable result of volumes was offset by solid selling price realisation and a change in direction of higher margin types.

“On the other hand, the share of income in joint ventures and associates diminished functioning profits, largely driven by strategic affiliate marketers these kinds of as Polestar, in which prices ended up incurred in their early advancement phase and a change in accounting remedy associated to deferred tax assets.”

Q4 2021 working profits was SEK3.7bn in the quarter and running margin 4.6%.

Excluding share of income from joint ventures and associates, EBIT margin was 7.1%.

Gross sales volume in the fourth quarter fell 20% although electrified versions remained well-known and people so named Recharge versions accounted for 34% of volume around the world.

Plug-ins accounted for 28% and BEVs 6%.

“The share of absolutely electric automobiles as element of overall profits will keep on to grow as Volvo Autos raises the yearly creation capability for entirely electric cars and trucks to 150,000 cars soon after the summer and, for the entire year 2022, the company expects that share to have additional than doubled in contrast with the whole calendar year 2021,” the automaker reported.

“Looking in advance, uncertainty is even now large. Even though the ingredient lack has eased relatively, the provide chain is expected to stay a restraining element. At the exact time, Volvo Vehicles carries on to see potent shopper demand, and expects that electric cars and trucks will expand more quickly than the overall market. This really should enable the organization to proceed rising product sales volume in 2022.”