Volvo reports steady earnings in second quarter of 2022 as it strides on in a turbulent market

Volvo Cars has performed remarkably well in a tough, turbulent year. It reported steady earnings in the second quarter of the year in face of uncertainties in global trade such as increasing raw material prices and supply chain constraints.

The company's retail sales amounted to 143,006 cars, down 27% compared to the same period last year. Revenues were also down two per cent compared to the same period last year, being less impacted due to strong pricing and product mix.

Fortunately for Volvo Cars, it is seeing a significant improvement in the stabilisation of its supply chain, with production making a strong comeback in June. Should this trend continue, it predicts that the company will increase production in months to come.

As a result, Volvo Cars expects its wholesales volumes for 2022 to be better than in 2021. However, due to the time lag between production and retail deliveries, those improvements are not expected to result into an increase in retail sales during the calendar year. Therefore for the year 2022, the company anticipates retail sales to be flat or slightly lower compared with volumes in 2021.