Volvo Car Soars 41% as Profit Beats on Cost-Cutting Success (4)

Volvo Car AB shares surged after the automaker reported better-than-expected profit in the third quarter, benefiting from its 18 billion-kronor ($1.9 billion) cost-saving program.

Operating income rose to 6.4 billion kronor, the company said Thursday, well above analysts’ projections. The earnings before interest and tax margin also improved in the period.

Volvo’s stock jumped as much as 41% in Stockholm, the steepest intraday gain since it started trading four years ago. The shares are now up more than a quarter this year.

The results suggest that a restructuring started by Chief Executive Officer Hakan Samuelsson is making an impact. The ...