Volvo Cars shares down 8% as first-quarter revenues fall

Shares of Swedish automaker Volvo Cars fell more than 6% in early trade on Wednesday after a drop in first-quarter revenues.

Revenue came in at 93.9 billion Swedish kronor ($8.65 billion) in the first three months of the year, down 2% from the first quarter 2023.

Company shares were 8% lower by 10:15 a.m. London time.

It comes as first-quarter core operating profit rose 8% year-on-year to 6.8 billion Swedish kronor. The figure excludes joint ventures and associates.

Retail sales also rose 12% year-on-year to 182,687 cars, after a new all-time monthly sales record in March.

Volvo CEO Jim Rowan said that while the sales growth was broad-based, the company's focus on premium autos had left it less exposed to increased competition and weaker mass market consumer spending.

"I think it's because we play into that premium market sector that we're a little bit more protected," he told CNBC's "Squawk Box."

The automaker said the results showed it was "on track" toward its target of at least 15% annual sales volume growth.

"We have had a strong start to the year, with our first quarter results laying a solid foundation for the year ahead," Rowan said in a statement.

The growth included a modest uptick in electric vehicles sales, as the company has doubled down on the category. EV gross margins rose to 16% in the first quarter from 7% the year prior.

Rowan said it was one of the few companies that can boast those levels of margins in the EV range.

"I think we're a little bit ahead of at least some of our competitors, and we plan to stay that way," he said.

"Our focus is not only on delivering the best EVs with the latest technologies, but to do so with solid margins," Rowan said.

Looking ahead, Volvo Cars said it expects a further rise in 2024