STOCKHOLM (Reuters) – AB Volvo reported a smaller-than-expected fall in its first-quarter adjusted operating profit on Wednesday, with the group also indicating that demand continued to normalize in the first three months of the year .
The Swedish truck manufacturer’s adjusted operating profit stood at 18.2 billion crowns (1.56 billion euros) after 18.6 billion crowns last year. Analysts surveyed by LSEG expected a figure of 16.9 billion crowns.
Volvo reiterated its forecasts for the European and North American heavy-duty truck markets, with 280,000 and 290,000 new units this year, respectively.
“In Europe, order backlogs and delivery times have normalized. Throughout the quarter, we have gradually reduced our production capacity in Europe and we expect to break even during the second quarter,” he said. CEO Martin Lundstedt said in a statement, adding that demand had continued to normalize at good levels in many markets.
(Report by Marie Mannes, French version by Augustin Turpin, edited by Blandine Hénault)
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