April 25, 2014 11:20 AM, EDT
Volvo’s 1Q Profit Surges Fivefold
TT File Photo

Volvo AB’s first-quarter operating profit surged almost fivefold as the company scaled back production to meet a cost-savings target for 2015.

Earnings before interest and taxes rose to $345 million from $73 million a year earlier, Gothenburg, Sweden-based Volvo reported in a statement.

Volvo revised its truck-market predictions for the year, stating that North American deliveries will total 260,000 vehicles industrywide, up from forecast of about 250,000 units.

Net truck sales rose to $6.3 billion from $5.6 billion for the quarter.

“In North America, the truck market continues its gradual improvement and, based on this, we raise our forecast for the truck market somewhat,” the company said in a statement, adding it is “planning for a slight increase in the production level towards summer.”

Volvo Group is the parent company of Volvo Trucks and Mack Trucks, both of which produce heavy-duty trucks in the United States.