Sweden-based Volvo Car Group (VOLCARb) on Wednesday signaled a potential drop in retail sales for the full year, despite an increase in its second-quarter profit.
The company said it projected full-year retail deliveries to be lower or to match those in 2021, while its wholesale volumes to increase.
The auto maker said it was seeing a “marked improvement” in the stabilization of its supply chain.
Still, “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 Cars said in a statement.
Volvo’s second-quarter operating profit surged to 10.8 billion Swedish Kronas (approximately $1.06 billion) from SEK 4.8 billion in the same period a year earlier, since accounting effects from the listing of high-performance auto maker Polestar bolstered results.
Operating earnings for the core business at Volvo Cars were reported at 4.6 billion Swedish Kronas during the latest quarter.
As of 10:26 GMT on Thursday the shares of Volvo Car Group (VOLCARb) were retreating 1.07% (SEK 0.80) on the day, while extending the loss from the previous session, to trade at SEK 73.82 in Stockholm.
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