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STOCKHOLM–Volvo Car AB said Wednesday that supply constraints and coronavirus-related lockdowns in China hit retail deliveries and production in the second quarter and will continue to weigh on retail sales into the third quarter, though demand remained robust.
The auto maker
VOLCAR.B,
said it is now seeing a marked improvement in the supply situation with production making a strong comeback in June, and provided this normalization continues, it expects production to progressively increase in the coming months.
“As a result Volvo Cars expects its wholesale volumes for 2022 to be better than in 2021,” Chief Executive Jim Rowan said.
“However, due to the time lag between production and retail deliveries, those improvements are not expected to result into an increase in retail sales during the calendar year,” Mr. Rowan said.
For the full year 2022, the company expects retail sales to be flat or slightly lower compared with volumes in 2021.
Net profit attributable to shareholders rose to 8.94 billion Swedish kronor ($873.7 million) from SEK2.5 billion, as earnings were boosted by SEK5.9 billion from the listing of Polestar on Nasdaq.
Revenue slipped 1.7% to SEK71.3 billion.
Analysts polled by FactSet had projected a net profit of SEK3.0 billion excluding the Polestar gain, on revenue of SEK70.73 billion.
Write to Dominic Chopping at dominic.chopping@wsj.com
