Volvo Cars’ quarterly operating profit falls as higher costs bite

(Reuters) -Swedish automaker Volvo Cars expects lower wholesales volumes this year, it said on Thursday as it reported a drop in third-quarter operating profit, hit by higher costs and lower volumes.

While manufacturing output had continued to improve in the third quarter, the pace of production normalisation has been slowed by power outages and COVID-19 related lockdowns in China, it said.

The Gothenburg-based company now expects 2022 wholesale volumes to be “slightly lower” compared to the year before, down from a previous forecast for better wholesales volumes than in 2021.

Stockholm-listed Volvo, majority owned by Chinese automotive company Geely Holding said its quarterly operating profit fell to 2.1 billion Swedish crowns ($193.41 million) from 3.3 billion a year ago.

($1 = 10.8579 Swedish crowns)

(Reporting by Marie Mannes, editing by Stine Jacobsen)