The logo of Swedish truck maker Volvo is pictured at the IAA truck show in Hanover, September 22, 2016. REUTERS/Fabian Bimmer
October 21, 2021
STOCKHOLM (Reuters) -Sweden’s AB Volvo reported third-quarter core earnings above market expectations on Thursday, boosted by strong demand for its trucks even as lingering chip shortages hampered production.
Adjusted operating profit at the maker of trucks, construction equipment, buses and engines rose to 9.40 billion Swedish crowns ($1.09 billion) from 7.22 billion a year ago, beating the 8.87 billion seen by analysts according to Refinitiv data.
Volvo, a rival of Germany’s Daimler and Traton, said order intake of its trucks, also sold under brands such as Mack and Renault, dipped by 4% from the year-ago quarter.
A global shortage semiconductor shortage has hit supply chains across large swaths of the manufacturing sector, not least the vehicles industry, and has prevented Volvo from fully capitalising on the robust demand.
Volvo said in a statement it had been affected by the shortages of components and freight capacity, resulting in production disruptions and increased costs in the quarter.
It also cautioned that it would continue to have disruptions and stoppages ahead, both in truck production and in other parts of the group.
($1 = 8.5917 Swedish crowns)
(Reporting by Helena Soderpalm; editing by Niklas Pollard)
Source: One America News Network
