Volvo Posted Unexpected Profit in Q2
Swedish truckmaker AB Volvo (VOLVb.ST) posted better-than-expected second quarter core profit as production shutdowns caused by the coronavirus were lifted, but it cautioned that the pandemic would weigh on demand for the foreseeable future.
The rival of Germany’s Daimler (DAIGn.DE) and Volkswagen’s Traton (8TRA.DE) said on Friday that the order intake for trucks under the Mack and Renault brands and its own name fell 45% year-on-year.
It said bookings improved toward the end of the second quarter but fallout from the virus, which has disrupted production and sent order bookings tumbling worldwide in an industry prone to sharp cyclical swings, meant the outlook remained unclear.
“When countries started to open up again, both fleet utilization and order intake began to recover,” Volvo CEO Martin Lundstedt said in a statement.
“However, there is still significant uncertainty about the future economic development and demand for our products.”
Adjusted operating profit at the maker of trucks, construction equipment, buses and engines fell to 3.27 billion Swedish crowns ($360 million) from 15.1 billion a year ago - far above analysts’ mean forecast of 17 million crowns, according to Refinitiv estimates.
Volvo shares, which have already clawed back the brunt of this year’s losses, rose 3.5% in early trading.
State-sponsored aid such as furlough schemes has supported the truck industry in Sweden and other production hubs, though Volvo plans to cut thousands of white-collar staff and has shelved its dividend.
Volvo’s strong truck orders “with very good momentum vs expectations in Europe” were a positive along with the profit numbers, analysts at Citi said in a research note.
It bookings fell 5% year-on-year in June, compared with a 90% plunge in April.
The pandemic has also disrupted business plans. Volvo said a strategic alliance with Japan’s Isuzu was now expected to close in the first half of 2021 rather than around the end of 2020.
Views:0
- Volvo, Daimler And Traton Agree On JV Charging Network for Europe 2021-12-27
- China Premier: VOLVO Trucks To-Be-Locally-Produced Flagship Model FH 2021-11-09
- 30 Days Countdown to CIIE, Volvo Group Announces Participation in the Expo 2021-10-11
- Volvo Trucks Acquires Heavy-duty Truck Manufacturing Operation in China 2021-08-24
- ZF Attends 2021 Volvo Auto Asia-Pacific Science Day on Sustainable Development 2021-07-23
- Volvo Trucks and DFDS Cooperate to Run Electric Supply Chain Transports 2021-06-07
- Volvo, Daimler to Form a Joint Venture for Large-scale Production of Fuel Cells 2020-04-24
- Volvo Trucks in North America Demonstrate Electric Heavy Duty Trucks 2020-02-13
- Volvo Develops Heavy-duty Electric Concept Trucks 2019-12-11
- Volvo Truck Delivers the 1,500th Truck to ZTO Express 2019-11-20
Submit Your Requirements, We Are Always At Your Service.
- BYD Stopped the Production of Fuel Vehicles
- Geely Began Test Runs of Green E-methanol Vehicles in Danmark
- 2022 SANY Global Dealer Summit Was Held Successfully Online
- BYD and Shell Partner on EV Charging across China and Europe
- Daimler Truck Significantly Increase Sales, Revenue and Net Profit in 2021
- Scania Year-end Report January-December 2021
- Hyundai Motor and Iveco Group Sign MOU to Explore Future Collaboration
- GAUSSIN Enters China, the Largest Truck Market in the World
- Over 1,200 Hydrogen-powered Vehicles Deployed for the Beijing Winter Olympics
- Chinese New Year Holiday Closure Notice
- China's Truck Exports Grew by 30% YOY to 63490 Units in January-February
- China's New Energy Heavy Trucks Grew Despite an Overall Slump
- Heavy-duty Truck sales in China Fell by 54% to 54,000 units in February
- SINOTRUK Achieves Sales of 27,725 Vehicles in January, 2022
- China’s Domestic Tractor Sales Exceed 40,000 Units in January
- 2021 JAC International Pickup Export Performance
- JAC Achieved a Great Result in 2021
- China's Truck Export in 2021 Reached a 10-year Peak
- Heavy-duty Truck Sales in China Fall 57 Percent on Year in January
- China Recorded Sales of 645000 Tractors in 2021