Volvo Cars reported a record operating profit of SEK 4.2 billion (EUR 4.2 million) for the second quarter of 2018. This is the company's highest operating profit so far, which has grown by 28.6% compared to the same period last year year, thanks to the increase in global sales.
The company's revenue in the second quarter of 2018 increased by 26.9% to 66 billion SEK, while sales increased by 14.6% to 170 232 vehicles. For the first six months of 2018, Volvo Cars reported an operating profit of SEK 7.8 billion, an increase of 15.7% compared to the same period last year and the highest profit reported over a six-month period. Revenue in the first half of 2018 increased by 23.6% to 122.9 billion Swedish kronor, thanks to the company's most successful six months with 317 639 cars sold globally, which is 14.4% more than first half of 2017
In our country, the XC60 has become an absolute bestseller of the brand, with twice as much sales as last year and a nearly 10% increase in market share in the segment. The all-new HS40 has also been successful in sales and a few months after its premiere in Bulgaria, it is seriously rising in market share in the rapidly growing segment of compact SUVs.
"These results show that Volvo is strengthening its position in a new period of sustainable global growth,"said Hakan Samuelsson, Volvo Cars president and chief executive officer.
"We expect 2018 to be another year of record winning, as we strive to become a diversified mobile service provider within our new"Freedom to Be Mobile"vision.
After being acquired by Zhejiang Geely Holdings in 2010, the company entered a massive transformation process by expanding its global production and in recent years has completely revamped its product portfolio. In the first half of 2018, Volvo introduced the new luxury V60 wagon and the S60 sports sedan, and at the same time opened its new production center in South Carolina, the company's first factory in the US.
Recently, Volvo Cars announced its new ambitions for the coming years, highlighting the ongoing transformation process from a car manufacturer to a service provider. Volvo's ambition is to position itself as a leading figure in the global automotive business. In the long run, the ambition of the company is to generate half of its sales of electric cars, one third of all cars sold to be autonomous and to provide its customers with a subscription service half of all the cars it offers.
These initiatives are expected to transform customer relationships, Volvo's goal being to build a total of over 5 million direct consumer relationships by the middle of the next decade.