STOCKHOLM -- Volvo Cars' quarterly profit fell on pricing pressure and higher tariffs arising from the trade war between the United States and China.
Operating profit dropped 19.3 percent to 2.92 billion Swedish crowns (274.4 million euros), Volvo said on Thursday in a statement. Operating margin fell to 4.6 percent from 6.4 percent.
Volvo repeated an earlier warning that it expected market conditions to put continued pressure on margins over the rest of the year.
"Compared with last year, profitability was affected by higher tariffs and increased price pressure in many markets," CEO Hakan Samuelsson said in the statement.
Volvo's fortunes have been revived since it was bought by China's Geely in 2010 but have come under renewed threat with the car sector facing one of its most challenging periods due to trade conflicts, hefty bills to develop electric and driverless cars, and an overall downturn in the industry.
The company has rejigged its global production plans in an effort to blunt the impact of increased tariffs.
Volvo last year postponed plans for a listing due to the auto downturn and trade wars.
Last month, Geely Automobile Holdings forecast flat sales in 2019 due to uncertainty about demand in China, the world's biggest auto market.
