Geely-owned Volvo Car has recorded a profit and increased sales for second quarter of 2011 but expects a volatile second half to the year.
President and chief operating officer Stefan Jacoby said the company, now owned by Chinese carmaker Geeley, booked operating earnings before interest and taxes of SKR600m (US$93m), SKR170m more than in the same period that of 2010.
He added: “We are gradually returning to sustainable profitability although we have more work to do before we reach our objectives. A good sales increase is evident in many markets as we are working to revitalise the Volvo brand to attract more customers.”
In the first six months of 2011, Volvo sold 230,746 vehicles, an increase of 20.3% compared to 2010. Retail sales in the second quarter increased by 26.6% to 123,919 units, compared with 97,884 units in 2010.
Growth was recorded in all sales regions, with the largest increase in China, up 62%. North America grew by 43%, the Nordic region by 17.7%, and Europe by 15.5%.
The company said that improved sales were mainly driven by strong demand for the new S60 and V60 together with the Volvo XC60 crossover.
Jacoby added: “Overall, the performance in the first six months provides great confidence. However, the current unstable economic climate is likely to result in additional volatility both regarding consumer confidence as well as exchange rates and raw material prices that may in turn impact profits.”