Stockholm, Feb 9 (Reuters) – Volvo Cars (VOLCARb.ST) said on Thursday that 2023 is likely to be another challenging year despite healthy demand for its vehicles as the Swedish carmaker reported a fall in quarterly profit.
Volvo Cars, which is majority-owned by Chinese automotive company Geely Holding (0175.HK), said its fourth-quarter operating profit dropped to 3.4 billion crowns ($322.2 million)from 3.7 billion crowns a year ago.
“Despite the global turbulence, uncertainty and our recent price increases, we continue to see healthy demand for our cars,” Volvo Cars said, adding it expects a “solid” double-digit growth in retail sales during 2023.
Volvo Cars and its peers have faced lingering chip shortages over the past year that have periodically hit manufacturing with the Sweden-based company forced at times to halt production at some factories temporarily.
Other supply chain issues, the energy crisis and red-hot inflation have also made the road more troublesome for the company.
The company once again proposed not paying out a dividend.
