Volvo Cars reported what it described as a “stable” financial result for the first quarter 2022 in a performance impacted by the war in Ukraine and the Covid-19 lockdowns in Asia.
“In the first few months of 2022, the war in Ukraine has destroyed lives and displaced millions of innocent people.
“The same war has also sent already rising inflation to new heights and further disrupted supply chains that were already fragile,” said Jim Rowan, chief executive of Volvo Cars.
Volvo Cars’ revenue amounted to SEK 74.3 bn (£6bn) , up from SEK 68.6 bn in the same period last year. Earnings before interest and taxes for Volvo’s core operations was SEK 6.0 bn down from 8.4 bn last time.
Retail sales decreased by 20% to 148,295 as the supply chain constraints affecting the company continued to slowly ease.
However, late in the quarter, the company was hit by a shortage of a specific component, which will also impact production during the second quarter.
Volvo Cars said it considered this a temporary setback and expects the supply chains to improve in the second half of the year.