STOCKHOLM -- Volvo Cars reported a sharp rise in third-quarter revenue and profits on Thursday helped by cost savings, but the automaker also sees market conditions continuing to pressure margins this year.
Automakers must grapple with trade conflicts, investments to develop EVs and driverless cars and an overall downturn in the car industry.
Volvo, part of China's Geely group, said its quarterly operating profit rose 90 percent to 3.49 billion crowns ($362 million), with revenues improving by 14 percent to 64.8 billion crowns. Its results were also boosted by strong demand for its utility vehicles.
The company said its sales growth had outpaced the industry in Europe, China and the U.S., as it sold 166,878 cars globally in the quarter.
"The growth in unit sales, revenue and profit was driven by a strong demand for our SUV range as well as cost efficiency," CEO Hakan Samuelsson said in statement.
Volvo said in July it would cut fixed costs by 2 billion crowns with measures to be completed by the first half of 2020.
The automaker repeated on Thursday that market conditions would continue pressuring margins this year, but that volume growth and cost measures would boost profits in the second half compared with the same period last year.
Volvo said it expected a slightly lower level of capital expenditure, after an intense period of investments in its global footprint and new technologies.