Volvo Stock Rises as April Truck Sales Exceed EstimatesAdam Ewing
Volvo AB, the world’s second-largest truckmaker, rose to the highest price in eight weeks after the company’s April deliveries topped analyst estimates.
Volvo gained gained as much as 1.6 percent to 96.6 kronor at 11:55 a.m. in Stockholm, the highest intraday price since March 25. The shares have climbed 8.8 percent this year, valuing the Gothenburg, Sweden-based truckmaker at 205.5 billion kronor ($30.8 billion).
The truckmaker’s sales totaled 16,572 vehicles last month, the company said in a statement today. That surpassed the 15,695 deliveries predicted on average by analysts in a survey by SME Direkt. Sales amounted to 6,334 trucks in Europe, Volvo’s second-largest market, and 4,237 vehicles in North America, beating estimates of 6,053 and 3,658 respectively.
Volvo posted its first order growth in six quarters for the first three months of 2013 as customers in recession-plagued Europe prepared to replace vehicles. Chief Executive Officer Olof Persson said last month he continued to see “good demand” for trucks in the first weeks of the second quarter, and that Volvo is gradually adding production in Europe.