(MENAFN) Shares of Swedish automaker Volvo Cars surged by more than 33% on Thursday following a stronger-than-expected profit report for the third quarter of the year.

For the period between July and September, Volvo Cars, which is part of China’s Geely Holding, revealed an operating income of 6.4 billion Swedish kronor ($680.4 million).

This figure was well above analysts' forecasts and represented an increase from $616 million in the same quarter of the previous year, according to Volvo’s financial results released on Thursday.

The company’s earnings before interest and taxes (EBIT) margin for the third quarter was 7.4%, marking an improvement from 6.2% in the year-ago period.

Volvo attributed its positive results to certain one-off factors, but emphasized that a significant driver of the improvement was the ongoing $1.9 billion cost-saving initiative.

"The action plan delivered faster than planned reductions in variable and indirect costs during the quarter," the company stated.

Despite the profits, Volvo’s revenues for the third quarter dropped to $9.1 billion, compared to $9.8 billion in the same period last year.

The company’s retail sales for the quarter also declined by 7%, totaling 160,514 cars sold compared to the previous year’s figures.

However, the company reported a modest rebound in retail sales in September, with strong performances in several markets, including the UK, Austria, Türkiye, Canada, Brazil, and Mexico.

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