Truck maker Volvo has posted a 23% increase in first-quarter earnings and also raised its outlook for Europe and North America.
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According to The Associated Press (AP), Volvo said net profit in the first three months of the year was 4bn kronor ($531m), up from 3.2bn kronor in the first quarter of 2005, while sales grew 15% to 60.2bn kronor ($7.99bn), from 52.3bn kronor a year ago.
The truck maker reportedly said demand for its vehicles in both Europe and North America was stronger than expected, as customers scrambled to place orders before new emission standards are introduced.
“Order bookings in North America were extremely high during the first quarter, and we have already sold virtually all our entire annual production for 2006,” chief executive Leif Johansson said in a statement cited by AP.
The Associated Press said Volvo has raised its forecast for the total market sales of heavy trucks in Europe this year from 270,000 to between 270,000 and 280,000, and in North America to between 340,000 and 350,000, from a previous forecast of between 333,000 and 340,000.
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By GlobalDataThe company also said it now expects a temporary drop in orders in North America until customers start asking for trucks with engines that meet the new emission standards taking effect in January 2007, AP added.
The company’s pre-tax profit rose 19% to 5.47bn kronor ($726m), far above analysts’ expectations of 4.41bn kronor ($585m), the report said.
