Volvo Cars swings into loss on electric vehicles, tariffs
The net loss of 8.1 billion kronor ($830 million) was due to a 11.4-billion-kronor writedown in the value of its EX90 electric SUV and ES90 electric sedan due to production delays, higher development costs than planned and now US tariffs making sales there unprofitable.
'Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition,' chief executive Hakan Samuelsson said in the quarterly earnings report.
The Sweden-based manufacturer owned by China's Geely also took a 1.4-billion-kronor restructuring charge, having announced 3,000 job cuts in May.
The group had booked a net profit of 5.7 billion kronor in the same quarter last year.
Excluding exceptional items, it estimated its quarterly operating profit at 2.9 billion kronor, down from 8.0 billion last year.
Retail sales of cars dropped by 12 percent by volume, while revenue fell by eight percent to 93.5 billion kronor due to lower volumes and the higher value of the Swedish kronor.
That beat the analyst consensus of 88.2 billion kronor compiled by Bloomberg.
Shares in Volvo Cars shot more than seven percent higher as trading got underway on the Stockholm stock exchange.
Volvo Cars announced in April an 18-billion-kronor cost-cutting plan, part of efforts to navigate a car market buffeted by US tariffs and a costly switch to electric vehicles.
It said then it would adapt to the increasing regionalisation in trade.
And on Wednesday it announced it would begin building its XC60 SUV in the United States next year to avoid the 25-percent US tariffs applied to its vehicles.
The company said it would no longer provide financial guidance for 2025 and 2026 due to 'external developments and increased uncertainties'.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Rudaw Net
5 hours ago
- Rudaw Net
UK condemns drone attacks in Kurdistan Region
Also in Iraq Iraq launches probe into Wasit mall fire that killed 63 Iraq holds nationwide mourning after mall blaze kills 61 At least 50 killed, dozens missing in Iraq shopping mall fire Iraqi PM inaugurates Mosul airport on anniversary of city's liberation from ISIS A+ A- ERBIL, Kurdistan Region - The British Embassy in Baghdad on Friday condemned a recent wave of drone attacks in the Kurdistan Region, including strikes that targeted key energy infrastructure, as tensions between Erbil and Baghdad appear to ease following a new financial agreement. 'The UK condemns the recent drone attacks across Iraq, including those this week targeting energy infrastructure in the KRI [Kurdistan Region of Iraq],' the British Embassy said in a statement. 'These attacks threaten civilians' safety, damage Iraq's economy and undermine Iraq's stability.' The embassy urged the Iraqi government to prevent further attacks and hold those responsible to account. In the month of July, there have been at least 19 drone attacks on locations in the Kurdistan Region. Most recently, on Thursday, two explosive-laden drones crashed in Erbil's outskirts, according to the Erbil-based Directorate General of Counter Terrorism (CTD). On Wednesday, the CTD reported drone strikes on two oil fields in northern Duhok province. One hit Norwegian energy company DNO's Tawke oil field, prompting the company to temporarily suspend operations. Gulf Keystone Petroleum, which operates the Shekhan field in southern Duhok, also halted operations as a precautionary measure. A day earlier, a drone targeted the Sarsang oil field northwest of Duhok city, operated by US-based HKN Energy. The company suspended activity pending a security review and full damage assessment. The Kurdistan Regional Government (KRG) has blamed the attacks on Iraq's Popular Mobilization Forces (PMF), a charge Baghdad has denied. Aziz Ahmad, deputy chief of staff to Kurdistan Region Prime Minister Masrour Barzani, said in a statement on Wednesday that the Region has lost nearly 200,000 barrels of oil production due to the 'spate of drone attacks by criminal militias on the Iraqi government payroll.' The Kurdistan Region's Presidency, Council of Ministers, and Ministry of Natural Resources all strongly condemned the attacks, describing them as attempts to cripple the Region's vital oil infrastructure. They called on the federal government to hold the perpetrators to account. No group has claimed responsibility for the attacks.
Iraqi News
a day ago
- Iraqi News
Volvo Cars swings into loss on electric vehicles, tariffs
Stockholm – Volvo Cars announced on Thursday it had swung into loss in the second quarter, after it took an impairment charge for its electric cars, booked restructuring charges and dealt with a slower, tariff-troubled market. The net loss of 8.1 billion kronor ($830 million) was due to a 11.4-billion-kronor writedown in the value of its EX90 electric SUV and ES90 electric sedan due to production delays, higher development costs than planned and now US tariffs making sales there unprofitable. 'Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition,' chief executive Hakan Samuelsson said in the quarterly earnings report. The Sweden-based manufacturer owned by China's Geely also took a 1.4-billion-kronor restructuring charge, having announced 3,000 job cuts in May. The group had booked a net profit of 5.7 billion kronor in the same quarter last year. Excluding exceptional items, it estimated its quarterly operating profit at 2.9 billion kronor, down from 8.0 billion last year. Retail sales of cars dropped by 12 percent by volume, while revenue fell by eight percent to 93.5 billion kronor due to lower volumes and the higher value of the Swedish kronor. That beat the analyst consensus of 88.2 billion kronor compiled by Bloomberg. Shares in Volvo Cars shot more than seven percent higher as trading got underway on the Stockholm stock exchange. Volvo Cars announced in April an 18-billion-kronor cost-cutting plan, part of efforts to navigate a car market buffeted by US tariffs and a costly switch to electric vehicles. It said then it would adapt to the increasing regionalisation in trade. And on Wednesday it announced it would begin building its XC60 SUV in the United States next year to avoid the 25-percent US tariffs applied to its vehicles. The company said it would no longer provide financial guidance for 2025 and 2026 due to 'external developments and increased uncertainties'.
Rudaw Net
a day ago
- Rudaw Net
Bomb-laden drones crash near Erbil following wave of attacks on energy sites
Also in Kurdistan Oil companies condemn attacks on Kurdistan Region fields Drone targets Duhok oil field operated by US firm Top Foxtrot member arrested in Erbil: Swedish media KRG approves 'understanding' with Baghdad on budget issues A+ A- ERBIL, Kurdistan Region - Two bomb-laden drones crashed in northern and southwestern Erbil on Thursday morning, causing no casualties or material damage, according to the Kurdistan Region's counterterrorism forces. In a statement posted to Facebook, the Erbil-based Directorate General of Counter Terrorism (CTD), also known as Kurdistan CT, reported that 'at 10:50 am [local time], a bomb-laden drone crashed' near the village of Surezha in Shamamk subdistrict southwest of Erbil. The statement confirmed that 'no human casualties or material damage' were caused. The CTD reported a similar incident earlier the same day in Erbil's northern Bahrka subdistrict near Jizhnikani village. These incidents follow a string of drone strikes that have targeted key oil and energy infrastructure across the Kurdistan Region since Monday. On Wednesday, the CTD reported drone attacks on two different oil fields in the northern Duhok province on Wednesday. 'Between 6:00 and 6:15 am, the DNO oil field in targeted by two explosive-laden drones," the Kurdish counterterrorism forces said, adding that 'a third drone targeted the DNO oil field in Tawke at 7:00 am,' causing material damage but no injuries. Norwegian energy company DNO confirmed in a statement that operations at both fields have been 'temporarily suspended' due to the attacks. Gulf Keystone Petroleum (GKP), which operates the Sheikhan oil field in southern Duhok, also announced it had temporarily shut down operations on Wednesday as a precautionary measure. A day earlier, a drone attack targeted the Sarsang oil field northwest of Duhok city, operated by the US-based HKN Energy, also prompting a suspension of operations at the facility 'until it is secured and a full evaluation is completed.' In a Wednesday statement on X, Aziz Ahmad, Deputy Chief of Staff to Kurdistan Region Prime Minister Masrour Barzani, said the Region has lost nearly 200,000 barrels of oil production due to a 'spate of drone attacks by criminal militias on the Iraqi government payroll.' He added that five oil fields, including two operated by US companies, have been targeted so far. The Kurdistan Region's Presidency, cabinet and natural resources ministry strongly condemned the drone attacks, describing them as attempts to cripple the Region's vital oil infrastructure. They called on Iraq's federal government in Baghdad to take urgent action to prevent further attacks and hold those responsible accountable. Responding to a question from Rudaw during a Wednesday press briefing, US State Department spokesperson Tammy Bruce censured 'these kinds of attacks' as 'unacceptable, adding, 'We've expressed our dismay and our problem with them.' Iraq's presidency, premiership, and parliament also condemned the attacks on Tuesday. Drone strikes in the Kurdistan Region have increased since the outbreak of a 12-day conflict between Israel and Iran that began on June 13 and ended with a US-brokered ceasefire. While no group has claimed responsibility for the latest attacks, the Kurdistan Region's interior ministry in early July accused the Popular Mobilization Forces (PMF) of involvement - a charge dismissed by Baghdad as 'unacceptable.'
