Swedish truck maker Volvo announced that it has booked a bigger rise than expected in its second-quarter core earnings, saying that it had successfully mitigated the worst effects of supply chain disruptions and higher material costs.
The adjusted operating profit for the truck, construction equipment, buses and engine maker rose to the equivalent of $AUD1.94 billion (13.75 billion Swedish krona up from the $AUD1.37 billion(9.73 billion krona) it booked a year ago. The bumper earnings also beat the forecasts made by leading analysts who beating predicted the figure would be around $AUD1.72 billion (12.17 billion krona).
Despite the profit ramp up, Volvo said that the situation in the global supply chain for components such as semiconductors was still unstable and unpredictable.
“We will therefore continue to have disruptions and stoppages both in the production of trucks and in other parts of the Group,” said Volvo’s president and CEO Martin Lundstedt.
The company said order bookings for its Volvo, Mack and Renault brands, fell 8 per cent year-on-year in the quarter.
The global shortage of components, including semiconductors and a lack of freight capacity have pressured truck makers after markets began to recover from a pandemic-induced demand slump.