Volvo Cars has more than tripled its operating income to £489 million as global sales rose by 10.5% year-on-year during the first six months of 2016.
The Swedish manufacturer, which recorded an operating income of £145 million for the same period in 2015 reported strong returns as it enjoyed the first full half-year sales of its burgeoning XC90 premium SUV.
An operating profit margin for the first half of this year also tripled to 6.7 per cent from 2.2 per cent for the same period last year, according to a statement issued by the brand.
“These numbers demonstrate that the momentum around Volvo Cars’ transformation is building,” said Håkan Samuelsson, Volvo’s president and chief executive.
“This robust first-half financial and operational performance, combined with a positive product pipeline, allows me to state confidently that Volvo Cars expects to report another record full year in 2016 in terms of sales and profitability.”
Volvo currently has a UK network of 102 retail outlets and registered 43,432 in 2015.
But the brand has targeted 48,000 sales this year and an eventual total of 60,000 with an extended range of nine vehicles.
Volvo currently sells the V40, S60, V60, XC60, XC90 and the recently-launched S90 and V90, but has plans to add S40 and XC40 derivtaives.
Global sales for the first six months of 2016 were up 10.5% compared with the same period last year, to 256,563 cars.
In Europe, sales rose 10.3%, while the turnaround in the US was confirmed with an increase of 24.8%, and sales in China increased 6.3%.
Sales of the XC90 for the first six months of the year were 43,911, bringing the total sold since its launch in 2015 to 84,532.
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