Volvo Cars profit in 2012 slumps

14:38, 4 May 2013

STOCKHOLM. May 3. KAZINFORM The profit of Volvo Car Group slumped by 99.1 percent in 2012, being strongly affected by the economic situation in Europe, said the company in a statement on Friday.

The operating income of Volvo Cars amounted to 18 million Swedish kronor (about 2.75 million U.S. dollars) in 2012, a dramatic fall compared to the 2.017 billion Swedish kronor (about 308.3 million U.S. dollars) in 2011.

Meanwhile in 2012 the net revenue of the company reached 124.5 billion Swedish kronor (about 19 billion U.S. dollars ), which was close to that in 2011, 125.7 billion Swedish kronor (about 19.2 billion U.S. dollars).

The total number of cars sold last year was 433, 000, a drop of 6.1 percent compared to the same period in 2011.

According to Xinhua, regarding the uncertain economic situation in Europe, which lead to the decrease in both sales and income, the company was focusing on the adjustment of costs with reference to the change in sales in the first half of last year.

At the same time Volvo Cars was continuing its long-term investment, which the group's transformation process required.

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