Truckmaker Volvo Gains After Profit Surge Offsets Order Slowdown

Truckmaker Volvo Gains After Profit Surge Offsets Order Slowdown

Bloomburg | By

Volvo Group rose after a jump in first-quarter profit helped to quell fears that demand is weakening in key markets.

The Swedish truck and construction-equipment manufacturer gained as much as 4.6 percent, the most in almost three months, after operating profit published Wednesday beat the highest of any analyst forecast compiled by Bloomberg.

Europe’s second-largest truckmaker boosted profitability in the first quarter to 11.8 percent, surpassing the company’s 10 percent margin target, as demand remained buoyant. Volvo left its market forecasts unchanged, with Chief Executive Officer Martin Lundstedt telling analysts in Stockholm that he sees upside potential for its forecast of 310,000 truck registrations in North America this year.

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