STOCKHOLM: Swedish truck maker Volvo Group on Wednesday announced a 9.9% rise in net profit in the first quarter despite lower sales volumes thanks to higher prices.
“Demand continued to normalise at good levels across many of the Volvo Group markets,” chief executive Martin Lundstedt said in a statement that announced net profit of 14.1 billion krona (US$1.29 billion).
Lundstedt said that after record demand in 2023, the company delivered 55,470 trucks in the first quarter this year, 10% down on the same period last year. Orders fell 19% to 48,701 trucks.
But net profit for the quarter was up from 12.9 billion krona in the same period last year. Sales revenue was stable at 131.2 billion krona (US$12 billion).
“Invoiced price continued to increase, mainly on the back of carry-over from the price increases we gradually implemented last year,” Lundstedt said.
Adjusted operating profits came to 18.2 billion krona, slightly down from 18.6 billion last year, but above the predictions of analysts consulted by Bloomberg.
The group said it had reduced production capacity in Europe but that deliveries and orders had risen strongly in Brazil.
Volvo Group, the number two truck maker behind Germany’s Daimler, warned in its annual report that demand was falling as the post-Covid 19 boom had ended and the world economy is weaker.
The truck firm was separated from Volvo Cars in 2000. In addition to the Volvo brand, it also Mack and Renault truck brands.
