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Investing.com — Volvo (OTC:) Vehicles (ST:) has reported first-quarter working earnings that have been beneath expectations, citing overseas change headwinds and weaker contract manufacturing gross sales.
The automaker introduced that earnings earlier than curiosity and taxes slipped to 4.7 billion Swedish crowns within the three months resulted in March, an 8% decline from the corresponding interval final yr. Consensus forecasts had referred to as for five.93 billion Swedish crowns, Reuters reported, referencing JPMorgan estimates.
Shares within the Swedish group fell in early European buying and selling on Wednesday.
However Chief Government Jim Rowan stated that demand is predicted to “stay sturdy” within the coming quarters, in step with the corporate’s steerage for full-year gross sales volumes development of a minimum of 15%.
The agency added that it anticipates that the variety of totally electrical vehicles in its newly launched automobiles will likely be “significantly” larger than in 2023. Rowan stated that Volvo Vehicles is assured that electrical automobile margins will proceed to maneuver larger regardless of not too long ago flagging client demand for EVs and rising prices associated to the event of the know-how.
Battery-electric automobile gross margins got here in at 16% within the first quarter, up from 13% within the prior quarter.
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