Volvo returned to a solid profit last year as firmer sales and a tight lid on costs helped it overcome a weak start to 2013 and lingering weakness in the U.S. market.

Operating earnings last year rose to 1.92 billion Swedish crowns ($301.9 million) from 66 million in 2012, a year in which one-off gains from the sale of technology to its parent company Zhejiang Geely Holding Group helped keep the carmaker in the black.

The sharp rise in earnings came despite Volvo having posted a 577 million loss in the first half and full-year revenues edging lower to 122.25 billion crowns from 124.55 billion.

“This strong turnaround from the first half of 2013 is further tangible proof of Volvo Car Group’s progress in implementing its transformation plan,” the carmaker said in a statement.

Volvo said its global vehicle sales increased by 1.4 percent last year to 427,840.

Volvo is banking on strong sales of increasingly locally-made Volvos in China to reach a target of roughly doubling sales by 2020. Last year, sales jumped 46 percent in the market to 61,146.

China has become a key bright spot for Volvo as it seeks to take on larger premium brands such as BMW, Mercedes and Audi and generate volumes sufficient to meet the costs needed to invest in new vehicles.

Volvo’s sales in China made it the group’s top market, and it expects new models and a further expansion of its dealer network in the world’s biggest car market to underpin growth.

But while turnover in China has taken off, a lack of new models saw sales in the United States slide 10 percent last year to stand at only roughly half of what they were a decade ago.

In response, Volvo has replaced top management in North America and hopes sprucing up a string of existing models and a launch of its V60 sports wagon will revive sales in the fiercely competitive U.S. market.

Volvo, bought by China’s Geely from Ford in 2010 amid a deep auto industry crisis, has said it expects sales to grow by “a good” five percent this yea.