Volvo Returns to Profit in Q2 as Demand Picks Up

Tue July 27, 2010 - National Edition
Construction Equipment Guide

STOCKHOLM (AP) Swedish truck maker AB Volvo returned to a profit in the second quarter from a loss a year earlier, helped by a gradual pickup in demand and improved productivity, it said July 22.

The company, based in Goteborg, southern Sweden, said net sales increased by 27 percent.

The profit sharply beat analysts’ expectations, despite the fact that sales were weaker than forecast.

Sydbank analyst Morten Imsgard said the report was very strong overall, showing the positive effects of previous cost-cuts, and that the construction equipment division performed particularly well.

“They have really pulled it off with very impressive margins in that business,” he said. “We can really see the cost cutting effect coming through in the smaller divisions.”

Imsgard added it also was positive for the future to see demand pick up in the North American truck market.

Volvo’s CEO Leif Johansson said the pickup in sales helped improve the company’s profitability, combined with strict cost control and “a good productivity development.”

“The pace in the recovery in demand has been rather moderate, which is positive as it gives us a good opportunity to continue with the activities that contribute to further increasing productivity and efficiency,” Johansson said.

He added that the sales trend had been particularly strong in Asia and South America, while volumes in Europe, North America and Japan are still at low levels from a historical perspective.

“We anticipate that the demand for new trucks in North America will continue to rise during the second half of this year and that the gradual increase in Europe also will continue,” he said.

Johansson reiterated his previous forecast that the European truck market will

Today's top stories

WBEs Leave Mark On Kansas City Airport

Ditch Witch MT26 Microtrencher Provides Deepest Cut Option for Fiber Job Sites

Caterpillar Surpasses $3B Tonnes Hauled Autonomously by Cat Command for Hauling Trucks

Crews Construct Bridge Offsite, Float It Into Place

All-New Brandt Coupler Built for Safety, Optimized for Deere

VIDEO: Volvo CE Delivers Its Version of the Factory 4 Tomorrow

Brass Knuckle Splash Goggle/Face Shield-In-One is Force to Be Reckoned With

Brooks Breaks Ground in Sparta, Wisconsin


ceg-logo ceg-logo ceg-logo ceg-logo ceg-logo