Volvo Group reported sales of about $9.9 billion in its third fiscal quarter, up 11 percent over the same period in 2020. Operating income for the quarter was up 30 percent to about $1.1 billion from the approximately $840 million reported in 2020.
Martin Lundstedt, president/CEO, said the quarter was “affected by shortages of semiconductors, other components, and freight capacity resulting in production disturbances and increased costs.”
Sales of Volvo trucks accounted for about $6.2 billion of the Group’s total, which was up 12 percent over the same period in 2020, and about $700 million in operating income. Demand is strong in North America for both new and used trucks. The company said utilization of the installed truck fleet is on “pre-Covid-19 levels, which drives high demand for spare parts and service.” Orders in North America rose 75 percent to 21,750 trucks, and deliveries grew 67 percent to 10,222 trucks.
Sales of Volvo construction equipment totaled about $2.3 billion for the quarter, up 11 percent, for about $300 million in operating income. North American demand “continued to grow,” according to the company, which cited high infrastructure investments and housing construction activity. It also said overall order intake was flat, with positive growth in Volvo-branded products offset by a reduction in SDLG orders.
Source: Volvo Group
