Volvo Raises European Truck Outlook as Orders Surge, Americas Business Rebounds

Stock News04-24 15:00

Swedish manufacturer Volvo AB (VLVLY.US) announced on Friday that it has raised its full-year forecast for the European truck market, driven by a significant increase in first-quarter order intake. The company also noted improving commercial activity in the Americas. Data showed that Volvo's order volume in the first quarter grew by 14% year-over-year. As a result, the company increased its full-year projection for the European heavy-duty truck market from 305,000 units to 310,000 units. In addition, Volvo also raised its market expectations for India and Brazil, pointing to growth in the global construction sector. Despite these positive developments, the company reported a year-over-year decline in net sales and operating profit for the first quarter, due to lower deliveries in South America and Asia, as well as several weeks of production stoppages in North America. Volvo indicated that the recent increase in orders in North America suggests that production in the region will achieve better balance starting in May. Volvo, along with its competitors Daimler Truck Holding AG and Traton SE, is gradually recovering from a previous period of weak demand. Earlier in January, Volvo had already raised its outlook for the European heavy-duty truck market, citing signs of stabilization toward the end of last year. The company stated that the conflict in the Middle East has not yet caused significant disruption to its supply chain but added that it will continue to monitor potential impacts on future demand.

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Earlier in January, Volvo had already raised its outlook for the European heavy-duty truck market, citing signs of stabilization toward the end of last year. 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