Volvo posts mixed results, cautions over challenging and volatile environment

By Dominic Chopping

Corrections & Amplifications

This headline was corrected at 0511 GMT. The earlier version misstated the period as the fourth quarter(4Q).

STOCKHOLM--Volvo Car AB on Thursday posted a smaller-than-expected drop in first-quarter earnings and cautioned that the external environment remains challenging and volatile.

Net profit attributable to shareholders slipped to 3.61 billion Swedish kronor ($349.8 million) from SEK3.85 billion a year earlier, as revenue rose 29% to SEK95.71 billion.

Analysts polled by FactSet had projected a net profit of SEK2.6 billion on revenue of SEK96.33 billion.

The Swedish auto maker said demand for its cars is healthy at a global level, with some regional variances and fluctuations. Overall, however, order book size is stable and at historically strong levels.

"The macroeconomic backdrop remains challenging. But we are confident that we can navigate these headwinds and deliver on our transformation," Chief Executive Jim Rowan said.

"Given the long-term nature of the headwinds our industry is likely to face, we are also evaluating the need for further targeted cost actions."

The company said that though some shortages continue and will still affect production during the second quarter of this year, it is cautiously optimistic about 2023.

If there are no unexpected supply-chain disruptions, it still expects a solid double-digit growth in retail sales for the year and a continued growth of fully electric car sales taking their share even higher than last year's share of 11%.

Write to Dominic Chopping at dominic.chopping@wsj.com

- Dominic Chopping

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-27-23 0144ET

Copyright (c) 2023 Dow Jones & Company, Inc.