Volvo Cars Returns to Profit in Second Quarter
The Swedish automaker Volvo Cars posted a profit in the second quarter of 2024, driven by cost reductions and lower research and development expenses compared to the same period last year.
Swedish automaker Volvo Cars returned to profitability in the second quarter of 2024, according to the company's released financial data. The return to profit was driven by cost reductions and the fact that the company had recorded significant restructuring expenses in the same period last year.
The company's research and development (R&D) expenses in April–June fell to SEK 5.37 billion, compared to SEK 12.9 billion a year earlier. Meanwhile, Volvo Cars posted an operating profit of SEK 826 million in the second quarter, versus an operating loss of SEK 9.95 billion in the same period last year.
The automaker's sales volumes declined slightly, with 171,500 vehicles sold in the second quarter, compared to 181,600 units a year earlier. Despite the drop in sales, the company managed to improve profitability, mainly due to tighter cost control and more efficient resource management.
