Truck maker Volvo raises market outlook after Q2 profit jump

SWEDISH truck maker Volvo on Wednesday (Jul 19) 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 krona (S$2.8 billion), up from 13.8 billion krona a year earlier and topping the 18.4 billion krona mean forecast in a Refinitiv poll of analysts.

Volvo said it expects sales of 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,” chief executive 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 per cent in order intake for the quarter. REUTERS