Volvo Cars warned on Tuesday that semiconductor shortages across the sector will continue into next year, as its first quarterly report since listing on the stock exchange a month ago confirmed a drop in revenue and earnings.

The Gothenburg-based automaker said supply chains are still limited, but while production remains below demand, it has “improved month after month since September.”

“The supply situation improved in the fourth quarter, but we expect the industry’s semiconductor shortage to remain a limiting factor,” CEO Hakan Samuelsson said in a statement.

Volvo’s IPO on October 29 was the largest in Europe this year, a testament to the strength of the European auto industry, which is in the midst of a difficult transition to electric vehicles.

The chip shortage has forced many automakers around the world, including Volvo, to cut production. CFO Bjorn Annwall said he expected this to be a major concern in the fourth quarter.

“No additional isolation issues,” he told Reuters.

Volvo, which is controlled by China’s Geely Holding, said preliminary November sales totaled around 52,000 vehicles, down from the same period last year.

The automaker reiterated its previously announced third-quarter operating profit of SEK 3.3 billion, up from SEK 4.6 billion a year earlier, and revenue fell 7% to SEK 60.8 billion.

The company maintained its full-year outlook for sales and revenue growth, with profitability improving to pre-pandemic levels.

Volvo Cars shares fell 2.9% in early trading, up nearly 30% since their debut on the stock market.

The company is committed to becoming an exclusively electric vehicle manufacturer by 2030. It owns a 49% stake in Polestar, a venture capital firm that announced in September that it would go public through a $ 20 billion deal.

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