Volvo 4Q Beat Forecasts, but Cautions on Continued Supply Disruptions
January 28 2022 - 3:07AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Volvo AB on Friday posted forecast-beating
fourth-quarter earnings amid strong truck demand, though it
cautioned that production stoppages due to component shortages and
supply-chain disruptions will continue.
The Swedish truck maker reported net profit of 8.0 billion
Swedish kronor ($854.8 million), compared with SEK9.2 billion a
year earlier, and beating a FactSet consensus forecast of SEK7.43
billion.
Sales rose to SEK102.38 billion, beating a forecast of SEK93.02
billion.
Truck deliveries rose 7.1% in the quarter, while order intake
fell 21%, the company said.
"Demand for trucks across key regions remains high and we are
doing our utmost to produce as much as we can to reduce long
delivery times to our customers," Chief Executive Martin Lundstedt
said.
"We have had extra costs to manage production due to supply
chain disruptions as well as higher costs for material and freight
... We expect that the inflationary pressures will continue."
Demand for construction equipment in Europe and North America
remained good, and it almost offset a steep decline in China, the
company said.
Volvo now anticipates that the China construction-equipment
market will fall 20% to 30%, from a previous estimate of 15% to
25%.
The company declared an ordinary dividend of SEK6.50 plus an
extra dividend of SEK6.50 a share.
For 2022, Volvo said it backed its truck market forecasts for
all regions.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 28, 2022 02:52 ET (07:52 GMT)
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