Volvo Motor Co. of Sweden said on Friday that its operating profit fell nearly 50% in the third quarter, due to higher product launch costs and tariffs. Volvo has postponed its listing plan this year.
But the company expects revenue and retail sales to continue to grow in 2018, helped by product portfolio updates and a drop in capital spending.
Volvo said its operating profit fell to 1.84 billion Swedish kronor ($201.5 million) in the third quarter ended Sept. 30, compared with 3.67 billion kronor in the same period last year.
The company's revenue grew 18% to 56 billion 780 million kronor, thanks to strong sales momentum in all three regions.
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