Newscasts - Volvo Cars' shares soar as profit tops expectations

Volvo AB

23/10/2025 10:00

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_6rn0t74a&referenceId=tag:reuters.com,2025:newsml_RW608923102025RP1_930&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: Volvo Cars beat third-quarter profit forecasts on Thursday, despite tariffs and tough competition, as sweeping cost cuts delivered faster than expected results, sending its shares more than a third higher. Ciara Lee reports.

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Video Transcript:

Volvo shares soared more than a third on Thursday, investors bought up after the automaker announced it beat third-quarter profit forecasts. Sweeping cost cuts have delivered faster-than-expected results. That's despite Volvo being one of the European carmakers most exposed to US tariffs. Most of its US-bound cars are exported from Europe. The company is based in Sweden, but majority owned by China's Geely. It said it made an operating profit before one-off costs of $627 million between July and September, smashing analyst forecasts. Although the automakers saw a 7% drop in sales with fully electric cars still making up for less than a quarter of the total. CEO Hakan Samuelsson, having previously run Volvo Cars for over a decade, was brought back this year to help revive its share price. He's since installed a new finance chief, announced 3,000 job cuts, pulled earnings guidance, and slowed investments.