Mikael Sjoberg | Bloomberg | Getty Pictures
Sweden’s Volvo Automobiles on Thursday posted stronger-than-expected third-quarter revenue, prompting shares to rally by round 40% and placing the inventory on observe for its best-ever buying and selling day.
Volvo Automobiles, which is owned by China’s Geely Holding, posted working earnings for the July-September interval of 6.4 billion Swedish kronor ($680.4 million), nicely above analysts’ expectations and up from 5.8 billion kronor a 12 months earlier.
Its margin on earnings earlier than curiosity and taxes (EBIT) got here in at 7.4% for the third quarter, in comparison with 6.2% in the identical interval final 12 months.
Volvo Automobiles stated the outcome was largely pushed by its ongoing 18 billion kronor cost-saving program, in addition to sure one-off gadgets.
The Stockholm-listed inventory worth jumped as a lot 41% on Thursday morning, earlier than paring positive factors. It displays the agency’s greatest intraday acquire because it began buying and selling 4 years in the past.
“In a troublesome market we delivered a strong third-quarter outcome and our value and money actions are delivering,” Volvo Automobiles CEO Håkan Samuelsson stated in a press release.
“We returned to a slight gross sales progress in September and we at the moment are ramping up gross sales of our BEV automobiles. We’re totally on observe in direction of the essential January launch of the EX60 within the largest and hottest electrical section,” he added.
Wanting forward, Volvo Automobiles stated it expects to see extra optimistic results from its cost-cutting drive within the last three months of the 12 months.
It famous, nonetheless, that the short-term outlook seems to be more and more difficult, citing persistent macroeconomic challenges, together with worth competitors and the results of U.S. import tariffs.
