Truck maker Volvo raises market outlook after Q2 profit jump
2023.07.19 02:37
© Reuters. FILE PHOTO-President and CEO of AB Volvo Martin Lundstedt stands in front of a Volvo truck, on the occasion of the publication of an interim report, in Gothenburg, Sweden, April 20, 2023. TT News Agency/Adam Ihse via REUTERS/File Photo
STOCKHOLM (Reuters) -Swedish truck maker AB Volvo on Wednesday reported a bigger-than-expected jump in second-quarter adjusted operating profit and raised its market outlook for Europe and North America.
Operating profit before restructuring charges and legal claims was 21.7 billion crowns ($2.12 billion), up from 13.8 billion a year earlier and topping the 18.4 billion mean forecast in a Refinitiv poll of analysts.
Volvo said it expects sales 330,000 heavy trucks in the European market this year, and as many in North America, raising an April forecast of 320,000 in each of those markets.
“We have been successful in improving margins while managing cost inflation and increased disturbances in the supply chain,” CEO Martin Lundstedt said in a statement.
Lundstedt said Volvo had again been restrictive in taking orders and that this, in addition to caution on the part of buyers, had led to a decrease of 10% in order intake for the quarter.
