Thursday, 25 July 2013 01:04
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Reuters: World number two truck maker Volvo AB achieved stronger than expected orders and earnings in the second quarter as a recovery in demand gained pace in nearly all its main markets. Heavy truck markets are slowly picking up on both sides of the North Atlantic, as a need to replace ageing fleets bought during the boom years before the 2008 financial crisis overpowers lingering worries among haulers about the economy.
“After a weak start to the year, the group’s sales and profitability recovered during the second quarter of 2013,” said Chief Executive Olof Persson.
Volvo, the dominant global player in the industry alongside Germany’s Daimler AG, said order intake grew by double-digits in all major markets with the exception of Asia, which suffered a modest decline.
Volvo, which makes heavy-duty trucks under the Renault, Mack and UD Trucks brands as well as its own name, said order intake of its trucks rose 16% year-on-year in the second quarter – more than the 11% in the first quarter. Bookings in Europe, its top market, were up 13%.
In its outlook for demand in major truck markets, Volvo stood by its forecast for slight growth in Europe, a stable North American market and a 20% expansion in Brazil.
