A Class Of Its Own

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

Geely’s Volvo Automobiles unit right now claimed report revenue and profit for whole calendar year 2021 inspite of “persistent ingredient provide shortages”.

Income rose to SEK282bn from SEK 262.8bn in 2020. Operating money was up to SEK20.3bn from SEK8.5 bn in Covid-19-affected 2020. Running margin was 7.2% even though the automaker did not offer a comparison.

“”Despite persistent element offer shortages in the car market, we enhanced current market share globally and delivered all time higher profits and profitability,” stated CEO Hakan Samuelsson.

However, preliminary facts for the fourth quarter of previous year confirmed revenue dipped 6% to SEK80.1bn.

“Demand and get consumption remained powerful, but production was restrained,” Volvo explained in a assertion.

“The negative result of volumes was offset by powerful price tag realisation and a change toward significant margin styles.

“On the other hand, the share of income in joint ventures and associates diminished running earnings, largely pushed by strategic affiliates this kind of as Polestar, where by fees ended up incurred in their early development section and a modify in accounting procedure related to deferred tax property.”

Q4 2021 functioning revenue was SEK3.7bn in the quarter and functioning margin 4.6%.

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

Sales volume in the fourth quarter fell 20% even though electrified designs remained well known and people so known as Recharge variations accounted for 34% of volume all over the world.

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

“The share of fully electrical cars as section of overall revenue will go on to increase as Volvo Cars boosts the yearly production capability for thoroughly electric cars to 150,000 vehicles just after the summer season and, for the full 12 months 2022, the organization expects that share to have much more than doubled in contrast with the whole 12 months 2021,” the automaker explained.

“Looking ahead, uncertainty is nevertheless high. Even though the component scarcity has eased to some degree, the supply chain is envisioned to remain a restraining component. At the very same time, Volvo Cars continues to see sturdy buyer need, and expects that electrical vehicles will grow quicker than the general industry. This really should permit the business to continue on growing profits quantity in 2022.”