Swedish truck maker Volvo Group reported on Wednesday a sharp uptick in quarterly sales that beat expectations, but orders for new vehicles declined.
The company, which also makes buses and construction equipment, reported an 18 percent increase in revenue to 140.8 billion kronor ($13.8 billion) in the second quarter, compared to the same period a year earlier.
"We are gradually entering into a more normalized demand situation with record strong profitability and high operational performance," Volvo Group CEO Martin Lundstedt said.
Analysts surveyed in separate reports by Bloomberg and financial data firm FactSet had forecast net sales of around 135 billion kronor.
Sales were partly buoyed but a weak krona and excluding currency effects net sales rose 11 percent, the company said. Operating income also rose 5.2 percent to 14.5 billion in the quarter.
At the same time the company recorded a more modest increase in net profit to 10.8 billion kronor, up from 10.4 billion kronor in the second quarter of 2022 but falling short of expectations.
According to a Bloomberg survey, analysts expected a net profit of 14.4 billion kronor, while FactSet forecast 12.9 billion kronor. In addition, the company reported a 10 percent decline in orders for new vehicles to 48,300, which Lundstedt said reflected "the fact that we have continued to be restrictive in slotting orders and also more cautiousness among customers."
In contrast, the truck-maker reported a more than 30 percent boost in first-quarter orders in April.
Volvo Group, as well as the wider auto industry, has been plagued by a shortage of key parts, including semiconductors, since economies emerged from the Covid pandemic.
