Volvo posts quarterly sales hike as profits soar

STOCKHOLM - Global automaker Volvo Cars on Wednesday posted a sales hike for the first quarter, during which profits soared.

Volvo sold nearly 121,000 units during the quarter, a 12 percent increase on the same period in 2015, according to figures reported by the company.

Its operating profit reached 3.1 billion Swedish krona ($384 million), and the operating profit margin reached 7.5 percent.

"We anticipate the full-year retail sales to increase," Volvo CEO Hakan Samuelsson said in a statement, adding that the company's luxury sports utility vehicle (SUV) model XC90 would be central to the upturn.

The XC90 accounted for one-sixth of Volvo's units sold during the quarter as net revenues shot up to 42 billion Swedish krona ($5.2 billion) from 34 billion Swedish krona ($4.2 billion) during the first quarter of 2015.

Western Europe accounted for some 49,000 units sold during the period, a 13-percent increase on the start of 2015. Sweden and China saw sales pick up 14 percent and 13 percent respectively.

In the United States, Volvo sold some 16,000 cars during the quarter, a 19-percent increase on the same period last year.

The automaker, which broke its annual sales record in 2015 by selling 503,000 cars, will continue to see its net revenue and operating income increase on an annual basis, Samuelsson said.

"The XC90 will, with a whole year of production, be a main driver. During the latter part of the year the start of production of the S90 and the V90 will also contribute to the increased sales," Samuelsson said.

Volvo, which was acquired by Chinese automaker Geely in 2010, employs nearly 29,000 people worldwide.