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Geely’s Volvo Cars books record revenue and profit for 2021

Geely’s Volvo Cars and trucks unit currently claimed file revenue and profit for comprehensive year 2021 despite “persistent ingredient supply shortages”.

Revenue rose to SEK282bn from SEK 262.8bn in 2020. Working earnings was up to SEK20.3bn from SEK8.5 bn in Covid-19-impacted 2020. Running margin was 7.2% nevertheless the automaker did not provide a comparison.

“”Despite persistent element source shortages in the vehicle field, we enhanced market place share globally and shipped all time superior profits and profitability,” stated CEO Hakan Samuelsson.

However, preliminary facts for the fourth quarter of previous yr showed revenue dipped 6% to SEK80.1bn.

“Demand and buy consumption remained robust, but manufacturing was restrained,” Volvo mentioned in a assertion.

“The destructive result of volumes was offset by sturdy price tag realisation and a change in direction of substantial margin types.

“On the other hand, the share of profits in joint ventures and associates lessened functioning earnings, mainly pushed by strategic affiliates these as Polestar, wherever prices ended up incurred in their early enhancement section and a adjust in accounting treatment relevant to deferred tax property.”

Q4 2021 operating income was SEK3.7bn in the quarter and operating margin 4.6%.

Excluding share of money from joint ventures and associates, EBIT margin was 7.1%.

Product sales quantity in the fourth quarter fell 20% though electrified types remained well-known and those people so named Recharge variations accounted for 34% of quantity around the globe.

Plug-ins accounted for 28% and BEVs 6%.

“The share of entirely electric powered vehicles as portion of full income will continue to improve as Volvo Automobiles will increase the annual output capacity for thoroughly electric powered cars to 150,000 cars soon after the summer and, for the full year 2022, the company expects that share to have more than doubled in comparison with the complete calendar year 2021,” the automaker reported.

“Looking forward, uncertainty is nonetheless higher. Whilst the component scarcity has eased rather, the offer chain is predicted to stay a restraining aspect. At the exact time, Volvo Cars continues to see solid purchaser demand, and expects that electric powered automobiles will develop a lot quicker than the general marketplace. This must let the organization to carry on growing sales quantity in 2022.”