Swedish heavy vehicle maker Volvo said on Friday its second-quarter net profit rose to 2.53 billion kronor ($370 million), driven by improved demand in North America and Japan.
This compared with a net profit of 2.1 billion kronor in the corresponding business period a year earlier for the Volvo Group, which excludes the brand’s China-owned car division.
Net sales in the quarter came in at 72.6 billion kronor, down 1 per cent year-on-year adjusted for foreign exchange and units that have been sold off.
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The group said it delivered 60,852 trucks in the quarter, up 2 per cent year-on-year. This was mainly driven by demand in the United States and Japan.
In Europe, there were signs of gradual recovery after a weak first quarter, “but the improvement started somewhat later than we had anticipated,” chief executive Olof Persson said.
Orders decreased 6 per cent in the quarter, to 52,974 trucks. In Brazil, customers were reported to be “cautious” ahead of pending presidential elections. Demand also fell in Russia amid the ongoing political turmoil in the region, Volvo said.
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As part of ongoing cost-cutting measures, 1,200 white collar workers have left the group, Mr. Persson said. The group maintained its target to shed 4,400 employees by the end of the year.
At the end of June the group had about 94,200 employees and almost 14,400 temporary employees and consultants.
The Volvo Group sells trucks and heavy vehicles, buses and construction machinery, and includes the division Volvo Penta. The Volvo car division is owned by Chinese group Zhejiang Geely Holding.