Geely’s Volvo Cars swings to January-June operating loss as pandemic weighs

FILE PHOTO: An employee at a Volvo car dealer wearing a protective mask is seen in the show room, amid the coronavirus disease (COVID-19) outbreak in Brussels, Belgium May 28, 2020. REUTERS/Yves Herman

STOCKHOLM (Reuters) – Volvo Cars, owned by China’s Geely Holding GEELY.UL, expects business to recover in the second half of the year, it said on on Tuesday as it reported an operating loss for the January-June period.

The Gothenburg-based carmaker reported an operating loss of 989 million Swedish crowns ($110.2 million), versus a 5.52 billion profit a year earlier, as revenues fell 14% to 111.8 billion.

The firm warned in March that sales, earnings and cash flow in the first half of 2020 would decline from a year ago as the coronavirus pandemic weighed on its business.

Reporting by Helena Soderpalm; editing by Johannes Hellstrom

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