Volvo Cars Q3 profit jumps as costs fall
FILE PHOTO: A Pure Electric sign is seen above a Volvo vehicle displayed during a media day for the Auto Shanghai show in Shanghai, China April 20, 2021. REUTERS/Aly Song/File photo
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STOCKHOLM : Sweden-based automaker Volvo Cars reported a rise in third-quarter operating earnings on Thursday driven by strong volumes and lower costs for semiconductors and raw materials.
Volvo Cars, majority-owned by China's Geely Holding, said operating income rose to 4.5 billion Swedish crowns ($402.75 million) in the quarter from a year-ago 2.1 billion.
Excluding joint ventures and associates the operating profit it came to 6.1 billion crowns.
Volvo said it had been able to maintain premium pricing despite facing pricing pressure in parts of the world.
"We remain vigilant in light of the macroeconomic and geopolitical uncertainties and remain laser-focused on execution," CEO Jim Rowan said in a statement.
He said there had been lower costs for freight and other logistics, as well as lower raw material prices.
Volvo and other automakers are starting to see some relief from high costs related to raw materials and inflation. An extended period of supply chain woes has also started to subside.
($1 = 11.1732 Swedish crowns)