SWEDEN’S Volvo Cars on Wednesday drastically cut its sales forecast for the year, saying car markets in China, Europe and the United States are “increasingly under pressure”.
The Chinese-owned automaker reported a net profit of 4.4 billion kronor ($416 million) for the third quarter, up from 3.2 billion kronor for the same period in 2023.
However, Volvo Cars said it expected to see minimal growth in the fourth quarter.
“As a result of this, we now anticipate fullyear sales growth of 7–8 per cent instead of 12–15 per cent,” CEO Jim Rowan said in the company’s third quarter earnings report.
The carmaker said its sales rose by three per cent to 172,849 cars in the third quarter.
Revenue for the quarter came in at 92.8 billion kronor, just beating the 92 billion kronor reported for the same period a year earlier.
Operating income meanwhile rose to 5.8 billion kronor, up from 4.5 billion kronor for the third quarter of 2023.
“The car market in our main regions of China, Europe and the US is increasingly under pressure which affects demand,” Rowan said.
AFP
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