Volvo, the Swedish truck maker, has announced its third-quarter earnings, surpassing expectations. Despite this positive news, the company warns of a potential weakening in the truck market next year.
During the third quarter, Volvo experienced a 4% increase in truck deliveries. However, order intake fell by 27% as demand began to normalize and the company gradually opened order books. While supply disruptions affected productivity and costs, they had minimal impact on deliveries.
Volvo reported a net profit of 14.09 billion Swedish kronor ($1.29 billion), compared to SEK8.63 billion the previous year. Sales also rose by 15% to SEK132.41 billion. Analysts had predicted a net profit of SEK12.05 billion on sales of SEK127.05 billion.
The company demonstrated an impressive adjusted operating margin of 14.4%, up from 10.3%. Volvo attributed this success to effective cost management and the ability to handle supply chain disruptions.
Looking ahead, CEO Martin Lundstedt expects major truck markets to remain strong throughout this year due to the fulfillment of large order books. However, he forecasts lower market levels for next year.
While Volvo raised its truck market forecasts for Europe and China for 2023, it maintained its guidance for other regions.
Overall, Volvo’s strong third-quarter performance highlights its ability to navigate challenges and meet customer demands effectively.
By Dominic Chopping