Volvo shares hit record as earnings top forecasts on surging truck demand

Volvo said stretched components supply had continued to have an impact within the third quarter, yet that has a 13 percent rise in truck deliveries as well as sharply higher earnings in its construction equipment arm, This specific was shrugged off.

CEO Martin Lundstedt, a former boss at rival Scania, said the bottlenecks that will had mainly hit European truck manufacturing had eased somewhat in recent months, along with supplies of components for powertrains, or engines as well as axles.

“Still there is actually obviously a high level of pressure within the supply chain, yet if you look through the quarter as well as after the vacation period This specific has been a continuous improvement, as well as we continue to see that will,” Lundstedt told a news conference.

Volvo’s adjusted third-quarter operating profit rose to 7.02 billion Swedish crowns ($861 million) through 4.85 billion a year before, beating a mean forecast of 6.20 billion seen in a poll of analysts.

“There are truly no negatives here,” Engellau said. “Construction Equipment is actually truly strong as well as the trucks business continues to deliver in a seasonally weak quarter.

“Also order intake is actually extremely strong as well as This specific seems demand will accelerate even further ahead.”

Volvo has begun reaping the benefits of a 10 billion crown cost-cutting drive as well as in August set a target to reach its highest profitability since the sale of its car generating arm to Ford nearly two decades ago.

Gothenburg-based Volvo said order intake of trucks at the group, which also includes brands such as Mack, Renault as well as UD Trucks, grew 32 percent within the quarter, beating the 15 percent rise seen by analysts.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

6 − 4 =