Good demand for Volvo’s trucks in the face of economic uncertainty have led to record second-quarter operating profit and boosted the company’s shares.
A burgeoning commercial vehicle market is a good barometer of the economic climate. Volvo Trucks said the only slow sector was construction equipment, where it downgraded its market outlook due to a slowing Chinese market.
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However, it said it expects Japan to recover from a 26% fall in the first half after the March earthquake and tsunami, with the full-year market seen down 6%.
Volvo repeated its forecast for the truck markets in Europe and North America to amount to 230,000-240,000 units each this year.
Chief executive Leif Johansson said: “During the second quarter, the Volvo Group’s sales continued to grow as an effect of a continued recovery in the group’s mature markets and continued strong demand in emerging markets.”
Johansson, who is due to leave the company in September after 14 years in charge, said group sales were now at the same level as before the financial crisis, with profitability at its highest level so far.
The group, which makes heavy-duty trucks under the Renault, Mack, UD Trucks and Eicher brands, reported operating profit rose 60% to SKR7.65bn (US$1.2bn).
In contrast, Swedish rival Scania saw weaker-than-expected margins bite into quarterly earnings earlier this week.
