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Bloomberg
Volvo AB’s second-quarter operating profit rise 39 percent, buoyed by resilient European demand for trucks and a production cut in the US to adjust for an expected slowdown, while construction-equipment earnings rebounded from a year-earlier provision.
Earnings adjusted for one-time items rose to $1.03 billion from 6.13 billion kronor a year earlier, the Gothenburg-based manufacturer said on Wednesday in a statement. The profit matched analyst estimates. It raised industrywide forecasts for trucks in North America and China.
Volvo protected profit by scaling back truck production last year in North America in anticipation of a market contraction. Demand in the US may benefit from President Donald Trump’s proposals to upgrade the nation’s infrastructure. Its heavy-duty vehicle deliveries rose 7 percent in Europe in the quarter, while advance sales
contracts for trucks jumped 22 percent, propelled by growth in the Americas. “The rise in Volvo’s order intake on trucks is very positive,†said Hans-Peter Wodniok, an analyst at Fairesearch GmbH & Co.