Shares of Sweden’s Volvo Cars plummeted by as much as 19% on Thursday morning, positioning the company for its most significant trading day ever.
The car manufacturer, which falls under China’s Geely Holding, reported a considerable decline in operating profit for the fourth quarter, attributing it to U.S. tariffs, adverse currency impacts, and weak consumer demand.
Volvo Cars indicated that fourth-quarter operating income excluding items affecting comparability dropped by 68% to 1.8 billion Swedish krona ($200.46 million) compared to the same timeframe the previous year.
“Several external elements influenced the company’s fourth quarter results, including EU-US import tariffs and the adverse currency effect from a stronger Swedish krona,” stated Volvo Cars in an announcement.
“Additionally, revenues were impacted by reduced demand, which exerted pressure on pricing and the discontinuation of EV incentives in the US, adversely affecting sales during the quarter,” the firm further noted.
Volvo Cars shares were last recorded down 16.5%, having recovered some of their earlier declines. A drop exceeding 11.2% in a single session would mark the firm’s worst trading day ever.
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