Truck giant AB Volvo presents a better result than expected. The second quarter is described as yet another strong quarter.
CEO Martin Lundstedt looks forward to a race on the electric vehicle side.
The July sun warms and there is a holiday calm on the Volvo Group's premises on Hisingen in Gothenburg. But the latest figures indicate a strong performance, according to Martin Lundstedt.
It's going well, it's yet another strong quarter, he says and develops:
We've talked about a normalization of our major markets in both Europe and North America, and that's what we're seeing now. But despite that, we're maintaining sales. We have an operating result that's strong at 19.4 billion kronor and a margin of almost 14 percent.
The stock price rose nearly five percent.
Net order intake during the second quarter was in line with the previous year.
If anything, a little stronger on the heavy and medium-heavy side, says the Volvo CEO.
Balancing and Investments
Investments in research, particularly in sustainable transportation, logistics, and infrastructure, are highlighted, where the group has also increased the number of employees.
However, earlier this year, 1,000 employees had to leave due to production reductions. When asked if it might be possible to rehire, the answer is that the business is now in balance and that the layoffs did not affect permanent staff.
The Volvo CEO takes the opportunity to ask about interest in buying after the supplier IAC Group Sweden's giant bankruptcy, where the bankruptcy administrator's goal is to sell IAC, which manufactures interior for the automotive industry, by the end of August.
On the other hand, it's a supplier that's important to us, so we've been involved and supported in this situation so that deliveries can continue, says Lundstedt.
Interest Rate Cuts a Signal
He looks forward to interest rate cuts and describes it as an important signal.
Since there are large capital investments when it comes to trucks, buses, and construction equipment, it's clear that a lower interest rate will help stabilize and boost volumes.
The competition for electric vehicles, not least from China, is described as part of something bigger.
We are now in a major shift, a transformation towards other technical and business solutions. This will lead to opportunities and threats for all players. We take all players very seriously, says Lundstedt, who describes the group's stance as forward-looking, with investments in various areas.
The race is on and we're looking forward to it, says the Volvo CEO.
Truck and bus manufacturer AB Volvo reports an adjusted operating profit of 19.4 billion kronor for the second quarter.
This can be compared to a profit of 21.9 billion kronor during the same quarter last year. The result was better than the average forecast, according to Bloomberg.
The group's net sales for the quarter amounted to 140.2 billion, which can be compared to 140.7 billion a year earlier.
The quarterly report comes after the German arch-rival Daimler Truck warned earlier in the week of a worse result than expected and said that the full-year forecast is now being reviewed.
Source: Volvo AB
