Truck maker Volvo’s profit beats expectations, says demand keeps normalising
2024.07.18 01:50
STOCKHOLM (Reuters) – Swedish truck maker AB Volvo (OTC:) reported on Thursday a bigger rise than expected in second-quarter operating profit and said demand continued to normalise compared with the high levels of 2023.
Operating profit was 20.3 billion crowns ($1.92 billion) against a year-earlier 14.6 billion and a mean forecast in an LSEG poll of analysts of 18.0 billion.
Volvo said in a statement profit margins were squeezed by lower sales volumes and increased investments in research and development, but were boosted by carry-over from price increases implemented last year.
“The Volvo Group delivered good profitability as demand in many markets continued to normalize compared with the high levels of 2023,” CEO Martin Lundstedt said.
The Gothenburg-based group, which also makes construction equipment and engines, raised its forecast for the total European heavy truck market this year to 290,000 new units. Its previous forecast for the region, from April, was for 280,000.
The forecast for the total North American heavy truck market remained unchanged at 290,000 units.
It lowered its outlook for the Chinese medium and heavy duty market to 750,000 units from 800,000.
($1 = 10.5512 Swedish crowns)
