STOCKHOLM, Nov 30 (Reuters) - Volvo Cars warned
on Tuesday that the sector-wide semiconductor shortage would
continue into next year, as its first quarterly report since
listing on the stock market a month ago confirmed a dip in
revenue and profit.
The Gothenburg-based carmaker said supply chains were still
constrained but while production remained lower than demand, it
had "improved month by month" since September.
"The supply situation has improved going into the fourth
quarter, but we expect the industry-wide shortage of
semi-conductors to remain a restraining factor, Chief Executive
Hakan Samuelsson said in a statement.
Volvo's initial public offering (IPO) on Oct. 29 was the
biggest in Europe so far this year, a sign of strength for the
European automotive industry which is in the midst of a
challenging transition towards electric vehicles (EVs).
The chip shortage has forced many automakers around the
world, including Volvo, to cut production. Chief Financial
Officer Bjorn Annwall said he expected that to be the major
issue in the fourth quarter.
"No extra lockdown related problems," he told Reuters.
Volvo, majority owned by China's Geely Holding,
said preliminary sales volumes were around 52,000 cars in
November, down year-on-year due to lower production and a
build-up of in-transit inventory.
It confirmed a previously announced third-quarter operating
profit figure of 3.3 billion Swedish crowns ($362.6 million),
versus 4.6 billion in the year-ago period, and revenues down 7%
to 60.8 billion crowns.
It also maintained its full-year outlook of sales volume and
revenue growth with improved profitability to pre-pandemic
Shares of Volvo Cars fell 2.9% in early trade, having surged
almost 30% since their stock market debut.
The company has committed to becoming a purely electric
carmaker by 2030. It has a 49% stake in EV venture Polestar,
which said in September it would go public through a $20 billion
($1 = 9.1009 Swedish crowns)
(Reporting by Helena Soderpalm; Editing by Simon Johnson,