Volvo 3Q Earnings Beat Market Views, Sees More Production Stops on Shortages
October 21 2021 - 2:57AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Volvo AB on Thursday posted forecast-beating
third-quarter earnings amid strong truck demand but cautioned that
production stoppages from component shortages will continue.
The Swedish truck maker reported a third-quarter net profit of
7.05 billion Swedish kronor ($818.9 million) from SEK5.72 billion
last year, beating a FactSet consensus forecast of SEK6.27
billion.
Sales rose to SEK85.26 billion, beating a forecast of SEK84.82
billion.
Truck deliveries rose 17% in the quarter while order intake fell
11%.
Volvo said demand was good in most markets but the quarter was
affected by shortages of semiconductors, other components and
freight capacity, resulting in production disturbances and
increased costs.
The company said it has had to be restrictive with truck order
slotting due to already large order books and long delivery
times.
"The situation in the global supply chain for semiconductors and
other components remains unstable, characterized by disruptions,
unpredictability and a lack of freight capacity," Chief Executive
Martin Lundstedt said.
"We will therefore continue to have disruptions and stoppages
both in the production of trucks and in other parts of the
group."
For 2021, Volvo cut the European and North American heavy-duty
truck market but lifted Indian truck markets.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 21, 2021 02:42 ET (06:42 GMT)
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