Volvo Cars Ireland reports 20% fall in pretax profit

Volvo Cars Ireland has reported a 20 per cent fall in pretax profit for 2012, after new car sales for the brand fell from 1,213 in 2011 to 1,062 last year.

In accounts filed for the year to December 31st last year, the firm reported a pre-tax profit of €239,370. Sales fell from 28.3 million in 2011 to €25.9 million last year.

In the directors’ report it states that after “the increases in Vehicle Registration Tax and motor tax announced in the December 2012 budget the car market has declined by over 10 per cent in the first quarter of 2013, with many registrations being heavily supported by manufacturers”.

The report also says: “Aftersales revenue is also under continuing pressure as shrinkage in the car market impacts on a declining car parc (the total number of cars on the road).”

The accounts show that turnover in 2012 comprised €22.3 million in car sales and €3.6 million from parts. Selling and distribution expenses fell from €2.1 million in 2011 to €1.87 million last year.

The average number of employees at the firm in 2012 was eight, with wages and salaries accounting for €483,273, down from €610,777 the previous year.