Volvo Trucks posts surprise Q2 profit

Volvo Trucks posts surprise Q2 profit
Photo: Volvo Truck
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.

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.

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