Volvo Cars posts smaller profit for the second quarter

STOCKHOLM, July 17 (Reuters) - ‌Sweden's Volvo ​Cars ​on Friday reported a decline in profits for the second quarter compared with the first ‌three months while the automaker hopes to speed up ⁠its recovery with deliveries of the new EX60 electric model ‌in the time ahead.

The ‌company, majority-owned by China's Geely Holding, posted an operating profit of 800 million Swedish crowns ($82,76 million) for ​the April to June period, lagging the 1.6 billion reported in the first quarter this year.

Volvo ⁠Cars said it still expects its earnings margins to receive a boost ​in the second half of this year as the output of the new flagship EX60 ​SUV fully ramps up.

"Volvo Cars ‌expects significantly stronger sales during the second half of the year compared to the ⁠first half, on the back of growth in Europe, a continued recovery in the U.S. and a challenging China ⁠market," Volvo Cars CEO Hakan Samuelsson said in a statement.

The ​company last year launched an 18 billion-crown cost-cutting plan, and said on Friday it said it had delivered 5 billion of ‌indirect savings six months ahead of schedule.

Gross margin, a metric investors and analysts ‌are looking at closely to assess the impact from ⁠trade tariffs, came in ‌at 16.8%, compared ​to 18.5% in the first quarter.

($1 = 9.6661 Swedish crowns)

(Reporting by Marie Mannes, editing by Terje ‌Solsvik)

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