Volvo Earnings Beat Forecasts After Price Increases Help Offset Easing Demand
By Dominic Chopping
STOCKHOLM--Volvo posted forecast-beating first-quarter earnings after price increases implemented last year continued to feed through, helping offset normalizing truck orders and generally declining demand for construction equipment.
The Swedish truck maker said Wednesday that truck deliveries fell 9.9% in the quarter while order intake fell 19%.
Truck market conditions continued to normalize both in Europe and North America as transport volumes and freight rates come down from very high levels, it said.
Order backlogs and lead times have normalized in Europe and the company has gradually reduced production capacity in Europe. In North America, Mack Trucks' order backlogs are still extended.
Demand for new construction equipment has come down in many markets, particularly in Europe. Both deliveries and order intake decreased in Europe and North America but increased in China.
Volvo reported a net profit of 14.08 billion Swedish kronor ($1.28 billion) compared with SEK12.91 billion a year earlier as sales were virtually unchanged at SEK131.18 billion.
Analysts polled by FactSet had expected a net profit of SEK12.9 billion on sales of SEK129.44 billion.
Volvo maintained its 2024 truck market forecasts for Europe, North America and China, but lifted its forecast for Brazil and lowered it for India.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 17, 2024 02:18 ET (06:18 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
After Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track