April 27, 2018 / 4:01 AM / 3 months ago

Geely's Volvo Cars posts 3.6 pct profit rise in Q1

STOCKHOLM, April 27 (Reuters) - Geely-owned automaker Volvo Car Group reported a 3.6 percent rise in quarterly operating earnings on Friday as growing sales in China and a recovery in the U.S. market offset increased development and marketing costs.

Swedish Volvo Cars, owned by Zhejiang Geely Holding Group, said operating earnings rose to 3.62 billion crowns ($417 million) in the first quarter of a year it flagged will entail heavy spending on marketing new models and developing technology.

“Volvo expects profits to remain strong based on an improved model mix,” the company said in its outlook for full-year 2018.

“Profit is expected to be partly impacted by increased expenses related to continued focus on marketing, R&D and digitalisation,” it added in a statement.

Revenues at the Gothenburg-based carmaker rose 18.9 percent to 56.81 billion crowns in the quarter.

$1 = 8.6799 Swedish crowns Reporting by Niklas Pollard; editing by Johannes Hellstrom

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