Volvo Cars' debut after "independence": 2021 performance rose sharply, sales fell continuously

On February 11, Volvo Cars announced its 2021 revenue and profit. It is worth noting that this is volvo Cars' first performance report after its independent listing from Geely.

Volvo Cars' revenue increased by 7% in 2021 from SEK 262.8 billion (USD 28,224.7 million) to SEK 282 billion (USD 30,286.8 million) in the previous year. Operating profit increased by 138% year-on-year from SEK 8.5 billion (US$912.9 million) to SEK 20.3 billion (US$2,180.2 million), representing an operating margin of 7.2%.

However, Volvo Cars' operating profit fell sharply in the fourth quarter of 2021 to SEK 3.7 billion (US$397.4 million), compared to SEK 4.9 billion (US$526.3 million) in the same period last year, and the market expected SEK 4.77 billion (US$512.3 million).

Volvo Cars' profits were greatly affected by the decline in order volume. In the fourth quarter, Volvo Cars sales fell 20 percent. In the third quarter, Volvo Cars sold about 150,000 units worldwide, down 17% year-on-year.

For two consecutive quarters, Volvo Cars' sales continued to decline, which is not unrelated to the lack of cores. Since 2020, the global semiconductor industry has seriously out of stock of chips, and the automotive industry has been greatly affected by the "lack of cores".

Recently, volvo cars CEO said that supply chain problems are improving, but progress is slow.

(Wen 丨 "Finance and Economics" Weekly Intern Cao Tingting Editor 丨 Mao Shiyang)