A Volvo car store worker presents a Volvo XC60 and other models via livestream in Shanghai, China, March 18, 2024.
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Shares of Volvo Cars rose sharply on Thursday after the company reported a jump in annual operating profit for the second quarter.
By 3:03 p.m. London Time shares were up 9.01%. The company said in a statement that net operating profit for the quarter was 8.2 billion Swedish kronor ($776 million), up 28% from the same quarter a year earlier.
The automaker said it was the highest ever for a single quarter. The core figure excludes joint ventures and related companies.
The automaker said global retail sales rose 15% year-on-year in the first quarter, to 205,400 vehicles, with the jump driven by increased sales of hybrid and all-electric vehicles.
The company said that electric cars and hybrid models accounted for a total of 48% of the company's global sales during the quarter.
Volvo has been doubling down on its electric car market amid fierce competition, with a group of Chinese automakers pushing hard into the sector. Tensions over high tariffs on electric cars imported from China have come to a head in recent months, with the US increasing tariffs on cars while European countries appear divided on how to handle the issue.
Volvo Cars' revenue fell slightly in the second quarter, to SEK 101.5 billion, compared to SEK 102.2 billion in the same period last year.
“We delivered a strong performance in the second quarter of 2024 with record underlying profitability, demonstrating our ability to create value despite a complex geopolitical and economic environment,” Volvo Cars CEO Jim Rowan said in a statement.
In the first quarter of 2024, Volvo Cars reported a 2% year-on-year decrease in revenue. Operating profit in the first quarter was SEK 6.8 billion, while retail vehicle sales were 182,687.
