Truck maker Volvo raises outlook for market after Q2 profit jump
STOCKHOLM (Reuters) — Swedish truck maker AB Volvo on Wednesday reported a bigger-than-expected jump in second-quarter adjusted operating profit and raised its outlook for the European and North American markets.
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 industry-wide sales of 330,000 heavy trucks in the European market this year, and as many in North America, up from 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.
(This story has been corrected to clarify that the outlook is for industry-wide sales in paragraph 1 and 3)
Read more on investing.com
