Volvo Cars warns of margin squeeze even as profits jump

Swedish automaker Volvo Cars has reported a sharp rise in third-quarter revenue and profits helped by cost savings, but the automaker also sees market conditions continuing to pressure margins this year. Volvo, part of China's Geely group, said its quarterly operating profit rose 90% to 3.49 billion crowns, with revenues improving by 14% to 64.8 billion crowns. Its results were also boosted by strong demand for its SUV models. The company said its sales growth had outpaced the industry in Europe, China and the United States, as it sold 166,878 cars globally in the quarter. Volvo said in July it would cut fixed costs by 2 billion crowns with measures to be completed by the first half of 2020. Volvo said it expected a slightly lower level of capital expenditure, after an intense period of investments in its global footprint and new technologies.

- Financial Times -



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