Volvo AB has reported a fourth-quarter profit on higher demand in North America and Europe and has raised its 2011 forecast for heavy-truck deliveries 10%.

Fourth-quarter net income totalled SKR3.23bn (US$500m) compared with a loss of SKR2bn a year earlier.

The truckmaker said it now expects total industry sales this year for Europe and North America of 220,000 vehicles in each of those regions, up from a previous prediction of 200,000 in each market.

Volvo, which makes Mack trucks in the US and Renault trucks in Europe, said fourth-quarter profit was lower than hoped due to currency shifts, production bottlenecks and costs for a profit-sharing program.

Truck orders in the quarter surged 63% to 62,051 vehicles. European registrations of trucks heavier than 16 tons were up 7.8% last year to 175,233 vehicles while North American heavy truck registration sales rose 21% to 153,246 heavy trucks.

Volva AB returned to profit in the first quarter of 2010 after five consecutive losses totalling SKR16.1bn, helped by cost cuts and sales boosted by the economic recovery.