Volvo Car heads for worst day ever after profit miss, tariff hit
05/02/2026 08:28
** Shares in Volvo Car VOLCARb.ST fall about 16.8% after the automaker reported a sharp fall in fourth-quarter profit, hit by tariffs, weak demand and currency effects ** "All in all, 2025 was a difficult year for Volvo Car, so the focus is now on executing its strategy to deliver long-term financial and strategic direction, which will help it return to profitable growth," J.P. Morgan says in a note ** The broker says profit and revenue missed expectations and warns of a tough 2026, as pricing pressure, tariffs, regulatory uncertainty and softer consumer sentiment are set to weigh on demand and shrink the premium market ** Q4 operating profit excluding items fell 68% to 1.8 billion Swedish crowns ($89.10 million) from 5.6 billion a year earlier on a 16% sales drop ** Shares are on track for a worst day ever ($1 = 8.9782 Swedish crowns) (Reporting by Jesus Calero) ((jesus.calero@thomsonreuters.com))