Volvo bounces back from first-quarter gloom
24 Jul 2013, 09:01
Published: 24 Jul 2013 09:01 GMT+02:00
"Despite having to increase our warranty reserves by 900 million for legacy truck quality issues, operating income totaled 3.3 billion, corresponding to an operating margin of 4.5 percent compared with 0.8 percent in the first quarter," the company said in a statement on Wednesday.
While profits were down 12 percent compared to the same period last year, the profits represented a 25 percent increase from the first quarter of this year.
"Compared with the second quarter of 2012, changes in currency exchange rates had a negative impact of 1,210 million kronor," the company wrote, adding that it was in a phase of reinvention.
"During the quarter, Renault Trucks launched a completely new range of trucks for distribution, construction and long-haulage. Volvo Trucks launched four new truck models. Altogether this is the biggest product renewal in the group's history."
The company credited that renewal for helping it bounce back from a "weak start" to the year.
"Thus far, the trucks have been well received by customers and dealers, which is of utmost importance since these new trucks will be highly significant to the Group’s sales and profitability in the coming years," said Olof Persson, President and CEO.