A Volvo EX30 absolutely electrical EV Automotive is displayed through the Every thing Electrical London 2024 at ExCel on March 28, 2024 in London, England.
John Keeble | Getty Photographs Information | Getty Photographs
Shares of Swedish automaker Volvo Automobiles fell greater than 6% in early commerce on Wednesday after a drop in first-quarter revenues.
Income got here in at 93.9 billion Swedish kronor ($8.65 billion) within the first three months of the 12 months, down 2% from the primary quarter 2023.
Firm shares had been down 5.9% by 8:50 a.m. London time.
It comes as first-quarter core working revenue rose 8% year-on-year to six.8 billion Swedish kronor. The determine excludes joint ventures and associates.
Retail gross sales additionally rose 12% year-on-year to 182,687 vehicles, after a brand new all-time month-to-month gross sales report in March.
Whereas the expansion was broad-based, Volvo CEO Jim Rowan stated the corporate’s deal with premium autos had left it much less uncovered to elevated competitors and weaker mass market client spending.
“I feel it is as a result of we play into that premium market sector that we’re a bit of bit extra protected,” he informed CNBC’s “Squawk Field.”
The corporate stated the outcomes confirmed it was “on monitor” towards its goal of a minimum of 15% annual gross sales quantity progress.
“We now have had a powerful begin to the 12 months, with our first quarter outcomes laying a stable basis for the 12 months forward,” Rowan stated in a press release.
The expansion included a modest uptick in electrical automobiles gross sales, as the corporate has doubled down on the class. EV gross margins rose to 16% within the first quarter from 7% the 12 months prior.
Rowan stated it was one of many few firms that may boast these ranges of margins within the EV vary.
“I feel we’re a bit of bit forward of a minimum of a few of our rivals, and we plan to remain that approach.
“Our focus will not be solely on delivering the most effective EVs with the most recent applied sciences, however to take action with stable margins,” Rowan stated.
Trying forward, Volvo Automobiles stated it expects an additional rise in 2024 retail gross sales in comparison with the earlier 12 months, with the share of absolutely electrical automobiles forecast to extend “significantly.”