Volvo’s Earnings Improve; Truck Orders Drop
Volvo AB said Wednesday its second-quarter earnings jumped 28%, as rising sales in Europe overcame a downturn in North America, Bloomberg reported.
But the company’s second-quarter truck orders fell 28% from a year ago, as customers delayed orders due to high fuel prices and slumping economies, Bloomberg reported.
Sweden-based Volvo, which reports its earnings in Swedish kronor, said its net income rose to the equivalent of about $853 million, or 42 cents a share, from $665 million, or 33 cents, a year ago.
Revenue at the company’s truck division rose 14% to $8.7 billion, while truck operating profit gained 26% to $804 million, Bloomberg reported.
Chief Executive Officer Leif Johansson said the European truck market would rise 10% this year, while the North American market would remain unchanged.
Volvo AB is the parent company of U.S.-based Mack and Volvo Trucks North America.
