Geely’s Volvo Cars Ahead of IPO

STOCKHOLM, July 23 (Reuters) – Volvo Cars said on Friday it had returned to profit for the January-June period, driven by a strong market recovery after the fall of last year’s pandemic as the carmaker owned by Geely is preparing for a potential IPO later this year.

The company, owned by Chinese company Geely Holding (GEELY.UL), has been boosted by growing demand for electric cars, but several automakers have been forced to cut production in recent times due to global semiconductor shortages. .

The Swedish automaker reported operating profit of 13.24 billion crowns ($ 1.5 billion) from a loss of 989 million a year earlier, when results were heavily affected by the initial outbreak of the pandemic.

First-half profits also exceeded Volvo Cars profits by SEK 5.52 billion in the corresponding period of 2019, before the novel coronavirus struck.

“All of our regions recorded solid growth with improved market shares and our strengthened sales mix, with an increasing share for our SUV models,” Managing Director Hakan Samuelsson said in a statement, adding that the company is maintaining its stable sales outlook for the second half of the year and year-over-year revenue growth.

The company, which plans to conduct an initial public offering (IPO) before the end of this year, said earlier this month that first-half sales rose 41% to 380,757 cars.

($ 1 = 8.6821 Swedish kronor)

Reporting by Helena Soderpalm; edited by Niklas Pollard

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