Volvo Trucks Sales Jump 72% Due to Strong Demand in Europe

Volvo, the world’s second-largest truckmaker, reported a larger-than-expected jump in both sales and profit, as demand in Europe and North America rose and the Swedish company held down costs. Deliveries up to and including June 2011 were 72 percent better than in the corresponding period last year.

Meanwhile, the company’s net income rose 62 percent to about $816 million. Overall, Volvo Trucks delivered 54,566 trucks in the first six months, compared to 31,734 during the same period in 2010. The company showed an increase in all major markets.

Deliveries to Europe in the first six months amounted to 23,674 trucks, an increase of 93 percent compared to the first six months of 2010. Demand was very strong in key countries such as Germany, France and Great Britain, where Volvo Trucks gained new market share in the course of the year.

Truck deliveries to Eastern Europe continued to increase, and in the first six months of 2011 they were 170 percent higher than in the same period of last year with sales in Russia and Poland especially positive.

Sales to North America totalled 10,633 trucks in the first six months of the year, representing an increase of 139 percent over last year. In South America, Volvo Trucks continued to strengthen its market position. By the end of June, deliveries to South America totalled 11,810 trucks, an increase of 33% from last year’s already high levels.

The company’s operating margin increased to 9.7 percent of sales from 6.9 percent a year earlier. Volvo reconfirmed its industry forecast for heavy trucks sales this year of 230,000 to 240,000 vehicles in both North America and Europe.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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