For the first time in its 89-year history, it issued a € 500 million bond issue in May, followed by another issue in November
Volvo Cars, the Swedish premium automaker, reported a solid 66% increase in operating profit in 2016 to SEK11bn ($ 1,239,150,000.00) compared to SEK6.6bn ($ 743,490,000) 2015.
Net income for this period increased by 10% compared to 2015, while the operating profit margin improved significantly from 4% in 2015 to 6.1% during the past year.
The results obtained are proof that the recent operational and financial transformation of the Scandinavian brand is bearing fruit. Global sales were up 6.2%, supported by an 11.5% increase in China and 18.1% in the United States, the two largest sales markets for Volvo.
Volvo is growing strongly,” said Håkan Samuelsson, President, and CEO of Volvo Cars. “The new models are successful, sales are at record levels, and profits are rising reflecting the contribution of all our employees. Based on these achievements, I estimate that 2017 will also be a record year regarding sales.
2016 is considered imperative as a financial year because a milestone for Volvo is fulfilled. For the first time in its 89-year history, it issued a € 500 million bond issue in May, followed by another issue in November. In December, it raised other SEK5bn (The US $ 563,250.00) from the sale of shares to three institutions.
In operational terms, during 2016 Volvo Cars fully deployed its 90 series through the new V90 – joining the already released S90 and XC90 – which allowed it to reposition itself as a genuine competitor in the premium segment.
Volvo Cars also announced two significant new partnerships in 2016 that reinforce its leadership position in autonomous driving, connectivity, and safety.
In August, he joined Uber for the development of cars for autonomous driving. During the following month, it announced plans to create a joint venture with Autoliv, the world leader in security systems, to create standalone driving software, the first time a leading premium car manufacturer joins a premium supplier to Develop ADAS and AD technologies.
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