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Truck maker Volvo’s profits are better than expected, but chip problems are protracted

The logo of Swedish truck maker Volvo was shot at the IAA truck show in Hanover on September 22, 2016. REUTERS / Fabian Bimmer

October 21, 2021

Stockholm (Reuters)-Sweden’s AB Volvo reported third-quarter core earnings on Thursday, exceeding market expectations. This was boosted by strong demand for trucks, despite a prolonged shortage of chips hindering production.

Adjusted operating profit from truck, construction machinery, bus and engine manufacturers increased from SEK 7.22 billion a year ago to SEK 9.40 billion ($ 1.09 billion), as analysts saw 88.7, according to Refinitiv data. It exceeded 100 million.

German Daimler and Traton rivals Volvo said orders for trucks, which are also sold by brands such as Mac and Renault, fell 4% year-on-year.

The global semiconductor shortage has hit the widespread supply chain of the manufacturing industry, especially the automotive industry, and has prevented Volvo from fully utilizing its strong demand.

Volvo said in a statement that it was affected by a lack of parts and freight capacity, resulting in quarterly production interruptions and increased costs.

He also warned that turmoil and outages would continue, both in truck production and in other parts of the group.

($ 1 = 8.5917 Swedish krona)

(Report by Helena Soderpalm, edited by Niklas Pollard)



Truck maker Volvo’s profits are better than expected, but chip problems are protracted

Source link Truck maker Volvo’s profits are better than expected, but chip problems are protracted

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