On Wednesday, AB Volvo (VOLVb.ST), which announced a higher-than-anticipated increase in quarterly earnings, stated that it anticipates a slowdown in the European and North American heavy truck markets in 2019.
The Swedish group estimated that in 2024, there will be 290,000 heavy trucks sold in Europe and North America.
It reaffirmed its July 2023 outlook, pegged the North American truck market at 330,000 units, and increased its European prediction from 330,000 to 340,000 units.
“We expect our major truck markets to continue to be strong throughout this year as we continue to deliver from our large order books to customers, but (we) forecast lower market levels for next year,” Martin Lundstedt, our CEO, said in a statement.
Volvo, a company in Gothenburg that also produces engines and construction equipment, reported a 27% decrease in third-quarter truck order intake.
However, its operational profit for the third quarter, excluding expenses associated with the group’s withdrawal from Russia, increased 61% from last year to 19.1 billion crowns ($1.75 billion).
This exceeded the 16.4 billion experts surveyed by LSEG had predicted. The company’s adjusted operating profit margin increased from 10.3% to 14.4% as price increases offset rising costs.
“We have successfully mitigated cost inflation with price management and continued to handle disturbances in the supply chain,” Lundstedt stated. According to Hampus Engellau, an analyst at Handelsbanken, the market forecast aligns with predictions. Shares of Volvo were up 1% in early trading.
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