The auto industry has struggled with a lack of chips that are key electronic components for cars, forcing some factories to pause production.

“The supply situation has improved going into the fourth quarter, but the industry-wide shortage of semiconductors is expected to remain a constraining factor,” chief executive Hakan Samuelsson said in an earnings statement.

Sales volume fell 17% to 149,900 units sold in the third quarter, the company said. Revenue fell by 7% to 60.8 billion kronor (US$6.7 billion).

Net profit was 31% lower at 2.3 billion kronor.

The number of vehicles coming out of Volvo factories fell by 31% in the third quarter due to the supply chain issue.

“In addition to general semiconductor shortage, new Covid-19 outbreaks in Southeast Asia affected our suppliers leading to temporary production halts in our plants,” Volvo said.

The results statement comes after shares of Volvo, which is majority owned by China’s Geely, began trading on the Stockholm stock exchange last month.