Volvo Reports 4Q Profit, Boosts 2011 Forecast
Volvo AB reported a fourth-quarter profit, boosted its 2011 truck-delivery forecast by 10% and said is considering assembling heavy trucks in China.
Fourth-quarter net income was about $500 million, compared with a loss of $308 million a year earlier, the Gothenburg, Sweden-based company said Friday.
Revenue rose 23% to $11.3 billion, said Volvo AB, which is parent company of Volvo Trucks North America and Mack Trucks.
Volvo, the second-largest global truck maker, delivered almost 57,000 trucks in the quarter, 30% over the third quarter and 49% over the fourth quarter of 2009.
North American orders more than doubled compared with a year ago and were up 11% from the third quarter, Volvo said. Worldwide truck orders jumped 63% for the quarter from a year ago and 22% from the third quarter.
North American truck sales rose 39% in the quarter from a year ago, to $1.2 billion. Total worldwide truck sales increased 28% to $7.4 billion.
For the full year, North American truck sales rose 25% from a year ago, to $4.2 billion. Total worldwide truck sales rose 20% to $25.8 billion.
Volvo said it expects industry sales this year for Europe and North America to be 220,000 vehicles for each of those regions, up from a previous prediction of 200,000 in each market, Bloomberg reported.
It also said it is considering assembling Volvo-branded trucks in China through its existing joint venture with Dongfeng Motor Group, Bloomberg reported, citing CEO Leif Johansson.
