ET Report
Volvo Trucks, the second- biggest maker of heavy vehicles, reported unexpectedly strong quarterly profits today and stood by its forecast of recovery in US and European markets.
In the three months through June, net profit was 3.15 billion kronor (333.4 million euros, 425.7 million dollars) from a record loss of 5.57 billion kronor for the same period last year. Sales showed a 12-month jump of 27.0 per cent to 68.8 billion euros. Sales of trucks are seen as a leading indicator of activity in industry in general.
The company switched into profit in the first quarter, on sales in Asia and South America, after five quarters of heavy losses and job cuts totalling nearly 20,000 in response to the effects of the economic downturn.
The results on Thursday exceeded forecasts by analysts, as polled by Dow Jones Newswires, of net profit of 2.17 billion kronor and sales of 65.29 billion kronor.