Volvo AB reported a strong third quarter with adjusted operating profit rising to 14.7 billion kronor ($1.32 billion) in Q3, driven by improved demand in North America and Europe. Total truck order intake increased by 26%. The Swedish truckmaker expects North American sales to grow more than 13% to 300,000 units next year, while European markets are set to grow slightly.
The global truck industry is emerging from a downturn, with recovery led by Volvo, Daimler Truck, and Traton. However, recent US orders have softened, raising concerns about timing given record-high diesel prices. CEO Martin Lundstedt noted the recovery is fueled by replacement demand for aging trucks and strong service business performance.
Long-term, European manufacturers face challenges from China's rapidly electrifying market, where battery-powered models are projected to account for about a third of truck sales this year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing