Why did Volvo Car move?
Written after the close on
Volvo Cars drops on weak quarterly sales and scrapped guidance. Over the last five trading days Volvo Cars fell very sharply, far more than a slightly lower Stockholm market, with the worst of it in the latest session even as the index rose. The likely driver is the third-quarter sales update showing global volumes down about a tenth from a year earlier, hit by a deepening slump in China and a slower-than-expected US recovery, alongside the company pulling its full-year volume and cash-flow outlook and flagging a significant hit to core profit and cash flow. Europe held up and fully electric sales grew, but that was not enough to offset the bad news; the nomination committee announcement earlier in the week was routine and not a price driver. Watch the full third-quarter report in late October, when management has said it will give more detail on its plan.
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