Volvo Trucks Post Strong Showing in U.S., Europe
“The higher income was attributable to the larger volume of sales and to improved margins in North American operations, which to some extent was offset by increased costs for introduction and startup production of new products,” Volvo said in a statement.
So far this year, Volvo’s North American sales are up 47% to 21,200 heavy truck units, compared to the 14,430 it sold in the first nine months of 1997. Its market share in the U.S. is 11.9%, up from 9.4% last year. In Europe sales have increased 22% to 28,950 units and Volvo now controls 15.6% of the market.
The operating profit from truck operations of $248 million is nearly double the $126 million Volvo made from trucks sales in the first nine months of 1997.
For AB Volvo as a whole — including its car, bus, construction and aerospace divisions — operating profits reached $653 million through the first nine months on revenue of $19.2 billion.
According to Leif Johansson, Volvo chief executive, truck sales in Western Europe and North America remain at record levels and have more than offset a slowdown in Asian and South American truck sales.
Although not as robust as the U.S. or European markets, South America bought 5,060 Volvos, an increase of 3%. Asian sales rose 1% to 2,930 units.
Volvo truck sales in the rest of the world are up 7%, the company said.
Mr. Johansson announced that Volvo plans to expand its business in Mexico with the purchase of MASA, a local bus manufacturer. Volvo also plans to assemble passenger cars for the Mexican market.
