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The
Gothenburg-based carmaker said supply chains were still
constrained but while production remained lower than demand, it
had "improved month by month" since September.
"The supply situation has improved going into the fourth
quarter, but we expect the industry-wide shortage of
semi-conductors to remain a restraining factor,” Chief Executive
Hakan Samuelsson said in a statement.
Volvo's initial public offering (IPO) on Oct. 29 was the biggest
in Europe so far this year, a sign of strength for the European
automotive industry which is in the midst of a challenging
transition towards electric vehicles (EVs).
The chip shortage has forced many automakers around the world,
including Volvo, to cut production. Chief Financial Officer
Bjorn Annwall said he expected that to be the major issue in the
fourth quarter.
"No extra lockdown related problems," he told Reuters.
Volvo, majority owned by China's Geely Holding, said preliminary
sales volumes were around 52,000 cars in November, down
year-on-year due to lower production and a build-up of
in-transit inventory.
It confirmed a previously announced third-quarter operating
profit figure of 3.3 billion Swedish crowns ($362.6 million),
versus 4.6 billion in the year-ago period, and revenues down 7%
to 60.8 billion crowns.
It also maintained its full-year outlook of sales volume and
revenue growth with improved profitability to pre-pandemic
levels.
Shares of Volvo Cars fell 2.9% in early trade, having surged
almost 30% since their stock market debut.
The company has committed to becoming a purely electric carmaker
by 2030. It has a 49% stake in EV venture Polestar, which said
in September it would go public through a $20 billion deal.
($1 = 9.1009 Swedish crowns)
(Reporting by Helena Soderpalm; Editing by Simon Johnson,
Kirsten Donovan)
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