Volvo announced a 77.5 percent profit rise in its third-quarter operating earnings, helped by strong momentum in China.
More specifically the Swedish automaker posted a quarterly operating profit of $442 million (3.7 billion Swedish crowns) against $250 million (2.1 billion crowns) for the same quarter last year.
Volvo’s China sales grew by 29.9 percent in the first nine months of 2017 while those in Europe also grew by 6.2 percent in the same period. Global retail sales were up by 9.0 percent to 413,472 units over 379,329 units last year.
The best-selling model is the XC60 in both old and new generations (previous generation models will go out of production this December), followed by the V40/V40 Cross Country. Volvo also reported strong demand for its 90-series models.
“The growth in net revenue was driven by the positive sales development in all markets and an improved sales mix as a result of increased sales of the new S and V90 as well as the XC60,” said Håkan Samuelsson, Volvo’s CEO. “As a result, the operating profit and the EBIT margin also improved, demonstrating progress in line with our goals of maintaining sustainable profit levels and being a truly global company with an attractive model line-up in all regions.”
Finally, the Swedish automaker predicts that 2017 will become its fourth consecutive year of record sales.