By Marie Mannes

STOCKHOLM (Reuters) -Volvo Automobiles stated on Thursday 2023 was prone to be one other difficult 12 months regardless of wholesome demand for its automobiles because the Swedish carmaker reported a fall in quarterly revenue.

Volvo Automobiles, which is majority-owned by Chinese language automotive firm Geely Holding, stated its fourth-quarter working revenue dropped to three.4 billion crowns ($322.2 million)from 3.7 billion crowns a 12 months earlier.

“Whereas 2023 appears to be like to be one other difficult 12 months, we’re hopeful that the COVID-related provide shortages from China are behind us and that we proceed to see regular enchancment within the provide of semiconductors,” it stated in an announcement.

“Regardless of the worldwide turbulence, uncertainty and our latest value will increase, we proceed to see wholesome demand for our vehicles,” Volvo Automobiles stated, including it anticipated a “strong” double-digit progress in retail gross sales throughout 2023.

Volvo Automobiles and its friends have confronted lingering chip shortages over the previous 12 months which have periodically hit manufacturing with the Sweden-based firm pressured at instances to halt manufacturing at some factories quickly.

Different provide chain points, the power disaster and red-hot inflation have additionally made the highway extra troublesome for the corporate.

Nevertheless, Volvo Automobiles reaffirmed its mid-decade targets, which embrace by 2025 promoting 1.2 million vehicles per 12 months. Some analysts had stated forward of the report the goal was too bold and could be extra real looking a number of years later.

“We stay uncertain whether or not the corporate will be capable of obtain these targets earlier than 2027 and assume the corporate must considerably stretch its definition of ‘mid-decade’,” Bernstein stated.

Toyota Motor (NYSE:), which additionally reported outcomes on Thursday, minimize its annual manufacturing goal in November and once more on Thursday. This, like Volvo, is regardless of its automobiles gross sales rising.

December was the strongest month ever in vehicles produced for Volvo.

The corporate as soon as once more proposed not paying a dividend.