Volvo’s Earnings Surge on High Truck Demand

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olvo AB, Europe’s largest truck maker, said Monday its first-quarter income rose by a third as trucking companies in North America and Asia continued strong demand, Bloomberg reported.

Volvo is the parent of U.S.-based Volvo Trucks North America Inc. and Mack Trucks Inc.

The Sweden-based company’s net income rose to the equivalent of about $461.3 million or $1.12 a share, up from about $345 million or 81 cents a year earlier.

Volvo and its competitors alike are selling more trucks in North America, but a shortage of heavy-truck manufacturing capability will hold growth to about 15% to 20% this year, Bloomberg reported.

First-quarter North American truck sales rose 56% to 15,209 units, from 9,772, Bloomberg said, citing Volvo figures.

Overall demand in Europe has flattened, though, with truck orders falling in the first quarter by 5% to 28,563 units, Bloomberg said.

Volvo's worldwide truck deliveries for the quarter grew 22%, to 52,605 units, Bloomberg reported.