STOCKHOLM (dpa-AFX) - Volvo Car AB (VLVOF, VOLCAR.ST), a Swedish maker of luxury vehicles, on Friday reported a loss in its third quarter, compared to prior year's profit, mainly as revenues were hurt by weak sales volume.
The company said the result reflects a further deteriorating external environment, led by market developments in China and the US.
Following the weak results, the company said it aims to reduce an additional 5 billion Swedish kronor in indirect spend and variable costs, on top of earlier cost programmes. These additional savings will be achieved by driving structural change, lowering corporate overheads and empowering its regions.
As part of the cost savings, the company plans a structural reduction of approximately 2,500 jobs globally, of which 2,000 are based in Sweden. This will be done through ending consultant contracts, through natural attrition and by targeted exit packages to employees.
Håkan Samuelsson, president and CEO, stated, 'We continue to operate in a very tough environment with strong external challenges: de-globalisation, hypercompetition and climate change. We are convinced that we have the right long-term strategy addressing these challenges. However, in the short term, with severely challenged volumes, we need to reinforce our turnaround plan with additional decisive actions, lowering our break-even point and improving cash flows to make us more resilient.'
The company said full financial effects of these measures will be realised by the end of 2027, by which time the company's overall indirect spend will be almost 25 percent lower versus fiscal 2024.
In the third quarter, net loss attributable to Owners of the parent company was 4.82 billion kronor, compared to prior year's profit of 5.20 billion kronor.
Loss per share was 1.63 kronor, compared to profit of 1.75 kronor a year ago.
Operating loss was 5.59 billion kronor, compared to prior year's income of 6.43 billion kronor.
EBIT, excluding share of income in JVs & associates and IAC, was loss of 3.7 billion kronor, compared to profit of 5.8 billion kronor a year ago.
EBIT margin was negative 8.4 percent, compared to positive 7.4 percent in 2025.
In the quarter, revenue plunged to 66.90 billion kronor from last year's 86.44 billion kronor, primarily explained by lower wholesale volumes and adverse sales mix and pricing.
Retail sales decreased 11 percent to 141.3 thousand cars from 158.5 thousand cars a year ago.
The results were also impacted by a 1.1 billion kronor loss item related to the revaluation of US CAFE credits following a retroactive change in emission legislation.
Citing the increasingly challenging market situation and deteriorating market outlook for the coming quarters, Volvo Cars said it has removed forward-looking statements for the remainder of the year.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
