Mikael Sjoberg | Bloomberg | Getty Images
Sweden's Volvo Cars connected Thursday posted stronger-than-expected third-quarter profit, prompting shares to rally by astir 40% and putting the banal connected way for its best-ever trading day.
Volvo Cars, which is owned by China's Geely Holding, posted operating income for the July-September play of 6.4 cardinal Swedish kronor ($680.4 million), good supra analysts' expectations and up from 5.8 cardinal kronor a twelvemonth earlier.
Its borderline connected net earlier involvement and taxes (EBIT) came successful astatine 7.4% for the 3rd quarter, compared to 6.2% successful the aforesaid play past year.
Volvo Cars said the effect was mostly driven by its ongoing 18 cardinal kronor cost-saving program, arsenic good arsenic definite one-off items.
The Stockholm-listed banal terms jumped arsenic overmuch 41% connected Thursday morning, earlier paring gains. It reflects the firm's biggest intraday summation since it started trading 4 years ago.
"In a pugnacious marketplace we delivered a coagulated third-quarter effect and our outgo and currency actions are delivering," Volvo Cars CEO Håkan Samuelsson said successful a statement.
"We returned to a flimsy income maturation successful September and we are present ramping up income of our BEV cars. We are afloat connected way towards the precise important January motorboat of the EX60 successful the largest and astir fashionable electrical segment," helium added.
Looking ahead, Volvo Cars said it expects to spot much affirmative effects from its cost-cutting thrust successful the last 3 months of the year.
It noted, however, that the short-term outlook appears to beryllium progressively challenging, citing persistent macroeconomic challenges, including terms contention and the effects of U.S. import tariffs.
English (US) ·