Volvo Cars plunges after Q3 miss, weak China and US weigh

Volvo AB

Today 08:21

** Shares in Volvo Cars VOLCARb.ST plunge about 25% after the automaker reported a sharp Q3 earnings miss
** Volvo reported Q3 revenue of SEK 66.9 billion ($6.75 billion), down 22.6% from a year ago and below market expectations, while wholesales fell 19% amid significant dealer destocking in China and the US, as per Jefferies
** Q3 EBIT came in at a loss of SEK 5.6 billion, roughly SEK 4.7 billion below consensus, with Jefferies pointing to weaker volumes
** The brokerage says China revenue fell about 50% year-on-year as domestic EV competition continued to pressure foreign brands, while US operations were hit by tariffs and the removal of EV incentives
** Operating and investing cash flow of SEK -8.7 billion was substantially weaker than expected, driven by working-capital outflows and leaving the group close to a net debt position, it adds
** Shares on track for the worst day ever
     
     
     
($1 = 9.9180 Swedish crowns)

(Reporting by Agnieszka Gosciak-Rabalska)
((Agnieszka.Gosciak@thomsonreuters.com))