Volvo sees another record year ahead for  sales in 2017

Volvo sees another record year ahead for sales in 2017

Volvo Car Group - owned by Geely - has reported operating earnings for 2016 up 66.6% on the previous year to SEK11bn ($1.25bn) on the back of a record level of car sales.

It also forecast 2017 will see another record set.

The company said global car sales hit a new record of 534,332 cars, led by big increases in the US and China markets.

Net revenue for the period increased 10% to SEK180.7bn compared to SEK164.0bn in 2015 while the operating profit margin improved significantly from 4% in 2015 to 6.1% in 2016.

Volvo said the positive results provide the latest proof Volvo's ongoing financial and operational transformation is 'gathering pace'. Global sales rose 6.2%, underpinned by an 11.5% increase in China and an 18.1% rise in the US, Volvo's two largest individual sales markets.

"Volvo is going from strength to strength," said Håkan Samuelsson, president and chief executive. "The new models are successful, sales are at record levels and profits are up substantially reflecting the contribution of all our employees. On the back of these achievements, I foresee 2017 will also be a record year in terms of sales."

Volvo has invested in a number of new models - such as the XC90 - and plans to secure a significant niche in the premium auto market. Last year it said it will rebalance its global manufacturing footprint to make more vehicles in China where it is enjoying considerable market success.