Volvo Cars continues to make hefty profits on increased income, as new models sell well.

Volvo Cars, the premium car maker, reported an operating profit of SEK3.5 billion for the first three months of the year, up 11 per cent from SEK3.1 billion during the same period last year. The increase was mainly driven by strong demand for the company’s XC60 and 90 series cars. 

Volvo Cars reported an operating profit margin of 7.3 per cent, down from 7.5 per cent last year. Profitability was partly offset by costs related to the launch of the new 90 series cars and the new XC60, as well as continuous investments in new technologies and a rising number of employees. Since the first quarter of 2016, Volvo Cars has welcomed almost 5,000 new employees, bringing the total global workforce to 33,000.

Global retail sales increased by 7.1 per cent to 129,148 cars in the January-to-March period, resulting in a first quarter revenue of SEK47.6 billion, up 13 per cent from SEK42.0 billion last year.

“In the first three months we have seen strong demand for our 90 series cars as they reached markets worldwide,” said Håkan Samuelsson, president and chief executive of Volvo Cars. “We also unveiled the new XC60 in the first quarter and we expect this car to have a positive impact on sales and profitability.” 

In March, Volvo Cars unveiled the new XC60 model at the Geneva Motor Show, which was received to great acclaim. Later this year, Volvo Cars will launch the XC40, based on the new CMA small vehicle platform, positioning the company for further growth in the fast-growing SUV segment.

Key figures	Q1 2017	Q1 2016
Net revenue, MSEK	47,592	42,027
Operating income, EBIT, MSEK	3,491	3,145
EBIT margin, %	7.3	7.5
Net income, MSEK	2,606	2,069
Cash flow from operating and investing activities, MSEK	-2,304	-323

The Asia Pacific region reported sales growth of 16 per cent in the first quarter to 32,872 cars, boosted by a strong performance in China, Volvo Cars’ largest market. There, sales rose by 18.8 per cent to 23,335 cars, following strong demand for the locally produced XC60 and S60L models, as well as the XC90 and S90.

Sales in the EMEA region increased by 9.2 per cent to 78,820 cars sold, on the back of a strong performance in Sweden, the United Kingdom and Germany. The region continued to see strong demand for the new V90 and XC90, as well as Europe’s most popular premium mid-size SUV, the XC60.

The Americas region reported sales of 16,641 cars, of which 13,476 were in the United States. The XC90 remained the best-selling model in the Americas.

New Volvo XC90: exclusive images, Well, Auto Express' own interpretation.

Our exclusive images show how the new Volvo XC90 could look when it debuts at the 2014 Paris Motor Show

Volvo is building up to the launch of its most important new car in a generation: the new Volvo XC90. The wraps will be pulled from the SUV at October’s Paris Motor Show – but we have the full story months before its official unveil. 

The second-generation XC90 will represent a landmark in Volvo’s development under Chinese owner Geely, and as our exclusive images show, it will get a chic new design inspired by the recent Coupe, XC Coupe and Estate concepts. 

The crisp new grille is flanked by slimmer headlamps, and bisected by T-shaped LED running lights. The pronounced step along the current car’s shoulder line has made way for a smooth crease, while kinked horizontal tail-lights give the rear an unmistakable signature at night. 

The XC90 is the first model built on the brand’s Scalable Platform Architecture (SPA), which will underpin all future large Volvos. Plus, it’ll come exclusively with the new range of 2.0-litre four-cylinder petrol and diesel Drive-e engines, and for the first time there will be a front-wheel-drive alternative to the standard four-wheel drive.  

Volvo XC90 2015: engine options 

Volvo has yet to release power and emissions figures for the XC90, but in the V40 the 187bhp D4 engine returns 74.3mpg economy and emits just 99g/km of CO2, while the 242bhp T5 petrol claims 47.9mpg and 137g/km. A flagship XC90 hybrid will use a supercharged and turbocharged petrol engine to drive the front axle and an electric motor at the rear for a total of around 400bhp and 600Nm of torque. 

All XC90s will get an eight-speed auto, but Volvo has confirmed the SPA platform will support a manual box for use in its saloons and estates. The SUV will also feature class-leading safety tech, with all the passive safety and collision avoidance systems standard on every model. Inside, Volvo’s designers have followed Tesla’s lead with a 9.3-inch portrait screen compatible with Apple’s new CarPlay interface. The sat-nav, audio, climate and car settings are controlled with swipe and pinch gestures, like on a smartphone. 

This clever screen tech will allow for a stylish, button-free dash design, so the cabin will take cues from the Concept Estate seen at last month’s Geneva Motor Show. Expect it to carry over the practical seven-seat layout, but with more space in each row as well as an increase in the current model’s 1,837-litre maximum boot capacity. 

The outgoing XC90 has been a huge success, with over half a million sold globally to date. And Volvo’s senior vice president of research and development, Peter Martens, has said the new car will be “just like the first time, but better”.

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