Volvo Automobiles to pay $310 mln dividend, second underneath China’s Geely, Auto Information, Automobilnews
STOCKHOLM: Volvo Automobiles can pay a dividend of two.9 billion Swedish crowns ($311 million) after document gross sales in 2018, the corporate stated on Thursday, with virtually all of it slated to spice up the coffers of its debt-laden Chinese language father or mother Geely.The cost comes as carmakers are grappling with the fallout of commerce wars, rising prices for creating electrical and driverless vehicles, and an trade downturn that has dented even probably the most worthwhile corporations.
The commerce battle brought on Volvo to postpone plans for a list final 12 months and generated further prices to retool its factories to restrict the tariff impression.
Premium rival Daimler lower its dividend in February after its fourth-quarter revenue plunged. In the identical week Volvo reported a fall in 2018 revenue margins and stated margins would stay underneath strain this 12 months.
Volvo has a acknowledged aim to spend roughly 5 % of its annual income on constructing electrical and autonomous vehicles, and a spokeswoman stated on Thursday Volvo believed it had sufficient money to cowl each the dividend and its improvement prices.This would be the second time that the Gothenburg-based firm has paid a dividend since being purchased in 2010 by China’s Zhejiang Geely Holding Group, which owns the Chinese language automotive model of the identical identify.
Volvo had paid a dividend of two.2 billion crowns for 2016.
The Swedish carmaker stated its proprietor will obtain round 2.eight billion crowns of the dividend and Swedish insurance coverage and financial savings group Folksam and pension fund investor AMF, which maintain choice shares, will get round 125 million crowns.
Geely has taken on debt after making latest stake acquisitions in Daimler and truck rival AB Volvo.
Volvo, which didn’t make a revenue for a decade underneath earlier proprietor Ford, offered a document 642,253 vehicles final 12 months and recorded an working revenue of 14.2 billion Swedish crowns. It has set a aim of reaching gross sales of 800,000 vehicles throughout the subsequent few years.