Volvo’s 2Q Profit Jumps on Higher Truck Sales
Volvo AB said Friday its second-quarter profit jumped 62% on higher truck sales in Europe and North America.
Net income rose to about $810 million, from $500 million a year earlier, the Gothenburg, Sweden-based company said in a statement.
Revenue rose 15% to about $12.5 billion, said Volvo, which reports its earnings in Swedish krona.
Its truck unit’s operating income more than doubled, to about $800 million.
North American truck deliveries more than doubled from a year ago to 10,290 units in the quarter. Worldwide deliveries improved 41% to almost 60,000.
Volvo has “reached a market share in the heavy-duty truck segment of 20% in the U.S. and 28% in Europe,” CEO Leif Johansson said in a statement.
Volvo maintained a previous forecast that the truck market in both Europe and North America will be 230,000 to 240,000 heavy-duty trucks in 2011, said Johansson, who is stepping down in September and will be succeeded by Olof Persson.
Volvo AB is the parent company of Volvo Trucks North America and Mack Trucks. Worldwide, it includes Renault Trucks, UD Trucks and Eicher brand trucks.
