Investing
Volvo Cars eyes cost cuts as Q1 profit drops
© Reuters. FILE PHOTO: An employee at a Volvo car dealer wearing a protective mask is seen in the show room, amid the coronavirus disease (COVID-19) outbreak in Brussels, Belgium May 28, 2020. REUTERS/Yves Herman
STOCKHOLM (Reuters) -Sweden-based automaker Volvo Car Group reported a smaller than expected fall in first-quarter operating earnings on Thursday and said that while overall demand remained healthy, it may cut costs as the global economy slows.
Volvo Cars, majority-owned by China’s Geely Holding, said operating earnings fell to 5.1 billion Swedish crowns ($494.63 million)in the quarter from a year-ago 6.0 billion, beating a mean forecast of 3.6 billion, according to Refinitiv estimates.
The automaker reaffirmed its outlook for “solid double-digit growth” in retail sales this year, provided there were no major supply disruptions.
While demand for the company’s cars was healthy, macroeconomic conditions were challenging, CEO Jim Rowan said.
“Given the long-term nature of the headwinds our industry is likely to face, we are also evaluating the need for further targeted cost actions that are sustainable over time and that will contribute to our growth,” Rowen said in a statement.
The CEO also said that lithium prices, a large source of cost for electric cars, had started to decline.
($1 = 10.3107 Swedish crowns)
Read the full article here
-
Side Hustles7 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Investing7 days ago
How I Transformed My Business by Letting Go of Low-Value Tasks
-
Make Money7 days ago
Here’s the Typical American’s Income at Every Age. How Do You Compare?
-
Investing7 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com
-
Side Hustles5 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles6 days ago
How to Develop Empowered Leaders Within Your Own Team
-
Side Hustles4 days ago
How to Be Unapologetically You and Why It Matters
-
Passive Income5 days ago
Are You Running Your Business, or Is Your Business Running You?