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Volvo Raises Europe Truck Market Forecast After Orders Jump
OEM Expects 310,000 Units This Year, Up From 305,000
Volvo AB lifted its outlook for the European truck market after orders increased, with business activity also improving in the Americas.
Global order intake jumped 14% in the first quarter, the Swedish manufacturer said April 24. It now sees Europe’s heavy-duty truck market at 310,000 units this year, from 305,000 previously. Volvo also increased forecasts for India and Brazil, and cited growth in the global construction market.
The company’s shares rose as much as 2.6% in Stockholm. The stock is up around 11% this year.
Volvo and its peers Daimler Truck Holding AG and Traton SE are recovering from a longer period of muted demand. Volvo had already raised its outlook for Europe’s heavy-duty truck market in January after signs of stabilization emerged toward the end of last year.
Still, the manufacturer reported lower net sales and operating income in the three months through March as deliveries decreased 3%. That was due to declines in South America and Asia as well as a number of production halts in North America, where it owns the Mack brand. The recent increase in orders in that region means output will be in better balance starting in May, Volvo said.
The Middle East conflict has not caused any major disruptions in Volvo’s supply chain, the company said, adding that it will monitor how it may affect demand down the road.
