Volvo Cars points to a potential slump in retail sales in 2022 after posting higher second-quarter profits.
Volvo reported global production rose 8% in June, its highest monthly output in 2022.
Supply problems have tightened production outputs and retail sales in recent quarters, but Volvo CEO Jim Rowan recently suggested he expects some improvement toward the end of the second quarter.
"On the supply situation, we are now seeing a marked improvement with production making a strong comeback in June," Rowan noted in the company's quarterly report.
Despite these positive signs, Volvo noted it expects full-year retail deliveries to be lower or on par with 2021, though wholesale volumes are expected to increase.
"However, due to the time lag between production and retail deliveries, those improvements are not expected to result in an increase in retail sales during the calendar year,” Volvo reported.
Volvo sold 698,693 vehicles in 2021. Its six-month volume for 2022 fell 23% percent to 291,300.
The automaker’s quarterly operating profit rose to 10.8 billion Swedish crowns ($1.06 billion) from 4.8 billion in 2021. The listing of its subsidiary, EV maker Polestar, helped boost operating profits. It resulted in an Ebit margin of 15.1%. Without the listing, Volvo's margin hit 6.5%.
Operating earnings at Volvo Cars reached 4.6 billion in the quarter.
