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


(END) Dow Jones Newswires

October 21, 2021 02:42 ET (06:42 GMT)

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