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Dow Jones Newswires: Volvo Car Q3 earnings hit by higher raw material costs; though demand robust

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STOCKHOLM–Volvo Car AB
VOLCAR.B,
+1.61%

said Thursday that higher raw-material costs, spot buying of semiconductors and logistics costs hit third-quarter earnings, though demand remained robust.

The auto maker said manufacturing output continued to improve during the quarter, but power outages and Covid lockdowns in China slowed the pace of normalization.

Improved production should continue into the fourth quarter and 2023 as long as there are no further major supply chain disturbances, the company said.

“Tangible actions are being taken to make our supply chain more resilient and robust in the long run,” Chief Executive Jim Rowan said.

“We are also going further into our supply chain to forge partnerships that will enable us to secure greater access of affordable and sustainable raw materials,” Mr. Rowan added.

The company expects production, wholesale and retail growth in the second half, with slightly lower wholesale volumes this year as a whole compared with 2021. Wholesale and retail volumes will be on similar levels, it said.

Net profit attributable to shareholders fell to 333 million Swedish kronor ($30.7 million) from SEK2.19 billion, as revenue rose 30% to SEK79.33 billion, the company said.

Analysts polled by FactSet had projected a net profit of SEK2.16 billion, on revenue of SEK78.05 billion.

Write to Dominic Chopping at dominic.chopping@wsj.com

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