Volvo Car

Citi cut its price target for Volvo Car and maintained its sell recommendation after weaker-than-expected Q2 results. Revenue fell to SEK 77.6bn (-17% YoY), 6% below consensus, and adjusted EBIT was SEK 826m (margin 1.1%), missing expectations markedly. Free cash flow was a weak SEK -5.2bn, hit by inventory build-up ahead of the EX60 production ramp-up. Volvo expects Q2 to mark the margin trough and sees volume increases for the EX60 in H2 and improvements in the U.S. business, while Citi expresses doubts about volume, pricing and product-mix prospects. » More on de.investing.com

Volvo Cars reports an operating profit drop of half to 800 million SEK in the second quarter, weighed mainly by a 35% collapse in sales in China. The operating margin fell from 1.6% to 1.1% and the share lost around 8% at the market open. CEO Hakan Samuelsson points to the fierce price competition in China as the driver of weak profitability; Volvo says it will not engage in discount battles. For the second half the group expects a recovery, plans a production ramp-up of the electric flagship EX60, growth in Europe and the US, a marketing offensive and aims for sales roughly 10% higher than in the first half. » More on manager-magazin.de

Volvo Car’s shares rose 2.7% to SEK 20.36, the company said, after global deliveries recovered sequentially in the second quarter. Sales of pure electric cars increased 14% (ninth consecutive month of growth), while total deliveries fell 5.6% year‑on‑year due to a sharp decline in China. Europe/rest of world +2% to 104,259 vehicles (electrified models 62% of sales), Americas +4% to 42,630 vehicles; however, the company warned of headwinds from weak consumer sentiment, intensified competition in the SUV segment and a slower recovery in demand for EVs and plug‑in hybrids after subsidy cuts. Volvo Car will release quarterly results on July 17. » More on de.investing.com