Categories: Stock Market

Truck maker Volvo posts record Q1 as sales and margins rise By Reuters


© Reuters. FILE PHOTO: Volvo trucks are seen for sale in Linden, New Jersey, U.S., May 23, 2022. REUTERS/Andrew Kelly

OSLO (Reuters) -Truck maker AB Volvo reported record first-quarter profits as revenue and margins rose, a preliminary filing showed late on Tuesday, in a sign the Swedish company had begun to overcome bottlenecks and inflation that hampered the industry.

The group’s adjusted January-March operating profit rose 45% year-on-year to 18.4 billion Swedish crowns ($1.76 billion), exceeding the mean expectation of 12.9 billion crowns in a Refinitiv poll of analysts.

Volvo and rivals such as Germany’s Daimler (OTC:) Truck and Traton have struggled with semiconductor shortages and broader supply chain issues and strained freight capacity resulting from the COVID-19 pandemic and the war in Ukraine.

Volvo’s preliminary net sales for the quarter stood at 131.4 billion crowns, up from 105.3 billion a year ago, while analysts on average predicted 118.6 billion according to the poll.

The company’s adjusted operating margin rose to 14.0% from 12.0% a year ago, and earnings at the group’s two major divisions, truck making and construction equipment, both showed progress compared to the same quarter of 2022.

($1 = 10.4303 Swedish crowns)

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