Transportation
Volvo Says Price Rises Help Returns as Truck Demand Softens
- Markets are normalizing from high levels after shortages
- Truckmaker cuts China market outlook, raises Europe forecast
The Volvo AB Trucks Tuve plant in Gothenburg, Sweden.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Volvo AB’s second-quarter earnings surpassed expectations and reassured after pessimistic updates from rivals as the truckmaker managed to defend its margins even as as key markets slowed.
Adjusted operating profit dropped to 19.4 billion kronor ($1.68 billion) in the period, ahead of analyst projections of 18.5 billion kronor, Volvo said Thursday. Operating return on sales in the three months through June was also better than expected.