Truck Maker Volvo Profit Beats Forecast, but Chip Woes Linger

1 year ago 234

STOCKHOLM—Sweden’s AB Volvo bushed third-quarter halfway net expectations connected Thursday, boosted by beardown request for its trucks adjacent arsenic lingering spot shortages hampered production.

Shortages of components and freight capableness had resulted successful accumulation disruptions and accrued costs, Volvo said successful a statement.

It besides cautioned it expected further disruptions and stoppages, some successful motortruck accumulation and successful different parts of the group.

While recovering strongly, the group’s sales and adjusted net remained beneath pre-pandemic levels.

JP Morgan said Volvo had produced a “solid acceptable of results,” contempt the disruptions.

“Despite constricted visibility successful the proviso concatenation and semi-conductor shortages inactive impacting the manufacture successful 2H21, we expect statement expectations to determination somewhat higher,” the concern slope said successful a note.

Volvo said bid intake of its trucks, including brands specified arsenic Mack and Renault, fell 4 percent from a twelvemonth earlier.

It forecast European dense motortruck marketplace registrations would emergence to 280,000 trucks successful 2021, and to 300,000 trucks adjacent year.

It expects the U.S. marketplace to scope 270,000 trucks this year, and 300,000 trucks successful 2022.

Volvo had antecedently forecast registrations successful some Europe and the United States astatine 290,000 trucks this year.

Adjusted operating nett astatine the company, which besides makes operation equipment, buses, and engines, roseate to 9.40 cardinal Swedish crowns ($1.09 billion) from 7.22 cardinal a twelvemonth earlier, beating the 8.87 cardinal expected by analysts.

A planetary shortage of semiconductors has deed ample swaths of the manufacturing sector, not slightest the vehicles industry, and has prevented Volvo from afloat capitalizing connected robust demand.

Germany’s Daimler Trucks, different truckmaker, said this period it would proceed to merchantability less vehicles than it could person successful the coming twelvemonth arsenic spot shortages hamper production.