Volvo, owned by the Chinese at Geely Holding, announced the financial results for 2021. It had historical records for revenue and profit.
Volvo Cars sold 698,700 cars in 2021, up 6% from a year earlier. This brought the company revenues of 26 billion euros. The operating profit was about two billion euros. The EBIT margin also stood at 7.2%, more than double the previous year.
The Swedish carmaker saw declines in sales in the fourth quarter: they fell by 20% compared to the previous year (168,000 vehicles sold), amid the semiconductor crisis that led to new plant shutdowns.
Between September and December, revenues were 80.1 billion kroner, down 6% from the previous year. Operating profit fell to 3.7 billion kronor, down 1.2 billion kroner.
According to Volvo, car demand was just as high in the fourth quarter, but production restrictions prevented all orders from being met.
“2021 is a year we are proud of at Volvo Cars. Despite the persistent crisis of components in the automotive industry, we have grown our global market share and consistently delivered high revenues and profitability, ”said Hakan Samuelsson, CEO of Volvo.
Volvo’s electrified car sales increased even more in 2021, to 34% of total annual sales, with 28% for plug-in hybrids and the remaining 6% for electric ones. Volvo says the percentage of power plants will double this year as production capacity for this type of propulsion increases to 150,000 units. Volvo’s 2022 forecast shows a further increase in line for the company’s performance.