Investing.com — Volvo (OTC:) Automobiles (ST:) has reported first-quarter working earnings that had been beneath expectations, citing international alternate 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 led to 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 mentioned that demand is anticipated to “stay sturdy” within the coming quarters, in step with the corporate’s steerage for full-year gross sales volumes progress of no less than 15%.
The agency added that it anticipates that the variety of absolutely electrical vehicles in its newly launched autos will likely be “significantly” larger than in 2023. Rowan mentioned that Volvo Automobiles is assured that electrical automobile margins will proceed to maneuver larger regardless of lately flagging client demand for EVs and rising prices associated to the event of the expertise.
Battery-electric automobile gross margins got here in at 16% within the first quarter, up from 13% within the prior quarter.
