Volvo Trucks posts surprise Q2 profit

Volvo Trucks, the world's second-largest maker of heavy-duty trucks, reported unexpectedly strong quarterly profits on Thursday and maintained its forecast of recovery in US and European markets.

Volvo Trucks posts surprise Q2 profit
Photo: Volvo Truck

In the three months through June, net profit was 3.15 billion kronor ($426 million) from a record loss of 5.57 billion kronor for the same period last year. Sales showed a 12-month jump of 27 percent to €68.8 billion (650.1 billion kronor). Sales of trucks are seen as a leading indicator of activity in industry in general.

The company swung to profit in the first quarter on sales in Asia and South America after five quarters of heavy losses and job cuts totalling nearly 20,000 in response to the effects of the economic downturn.

The results on Thursday exceeded forecasts by analysts, as polled by Dow Jones Newswires, of net profit of 2.17 billion kronor and sales of 65.29 billion kronor. The group kept its forecast that sales in Europe would grow by 10 percent and in North America by 20 to 30 percent this year.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


US and Japan fuel surge for Volvo trucks

Sweden's Volvo, the world's second-largest maker of trucks, said Friday it saw a spike in profits in the third quarter, boosted by thriving sales in the US and Japanese markets.

US and Japan fuel surge for Volvo trucks
Ed Carbaugh prepares to install parts on a truck engine on an assembly line at Volvo Trucks' powertrain manufacturing facility in Hagerstown, Maryland, March 2014. Photo: Patrick Semansky/AP

Net profit increased eight percent to 1.5 billion kronor ($206 million), while sales rose 3.6 percent to 67.2 billion kronor, above expectations by analysts who had forecast 63.8 billion kronor.

"The market development in the third quarter followed the overall direction from the second quarter with good momentum in North America and Japan," chief executive Olof Persson said in a statement.

At the same, there was "continued slow development in the emerging markets in South America and Asia," he said.

In Europe, the company had seen increased uncertainty in many markets based on the political and economic situation, which has led to the positive momentum from the first half of the year leveling off, the company said.

One year ago, the then struggling Volvo Group announced the elimination of 2,000 jobs of managers and consultants.

For 2015, the company predicted the market for heavy-duty trucks would be at the same level as in 2014 in Europe, Japan and China, while higher in North America and India.