Volvo Cars pulls sales guidance on Chinese outlook and slow US rebound
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Volvo Cars pulled its sales guidance as market conditions in China worsened and the US recovery slowed.
- ✓Shares fell 3% to a record low of 14.60 crowns.
- ✓Analyst Hampus Engellau said, "This is partly expected because we've seen that the market has been very tough." Sales dropped 11% this quarter.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Volvo Cars, which is majority owned by China's Geely Holding (GEELY.UL), has struggled to meet previous profitability targets because of tariffs, weaker electric vehicle demand and high development costs.
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It said in a statement that the market backdrop had resulted in lower than expected sales and a weaker full-year outlook for the company. It did not specify new guidance.
"This is partly expected because we've seen that the market has been very tough," Handelsbanken analyst Hampus Engellau said of the pulled sales guidance.
Shares in the company were down 3% at 0800 GMT after losing as much as 4% in early trade to a record low of 14.60 crowns per share. The shares have lost about 50% of their value this year.
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Reuters
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