AB Volvo logs revenue soar however warns of upper prices, provide disruptions By Reuters

By Marie Mannes

(Reuters) -Swedish truck maker AB Volvo mentioned third-quarter core earnings climbed 26% as ageing fleets had been changed in Europe, however warned it could be challenged by sharp will increase in vitality and materials prices in addition to provide disruptions.

Shares within the firm fell 3% in early commerce.

Volvo mentioned rising vitality costs had put its provider base underneath monetary stress. On the similar time, additionally it is grappling with a world scarcity of semiconductors and different elements in addition to difficulties in delivery its vans to prospects attributable to lack of drivers.

“We’ll subsequently proceed to have disruptions, stoppages and further prices each within the manufacturing of vans and in different elements of the Group,” Chief Govt Martin Lundstedt mentioned in a press release.

Adjusted working revenue on the Gothenburg-based producer of vans, development gear, buses and engines, jumped to 11.87 billion Swedish crowns, in keeping with analysts’ forecasts.

Income shot 35% larger to 114.9 billion crowns.

Internet orders for vans, offered underneath manufacturers corresponding to Mack and Renault (EPA:) in addition to its personal title, rose 27% to 64,700 automobiles. Pent-up demand to interchange ageing fleets in Europe offset a decline in gross sales in North America.

Forex results had a optimistic impression of two.42 billion crowns.

Volvo stored its 2022 forecasts for truck registrations in Europe and North America unchanged at 300,000 for each areas. It additionally mentioned it expects each areas to log 300,000 registrations subsequent yr.