Volvo 3Q Earnings Beat Expectations, Truck Markets Seen Lower Next Year

By Dominic Chopping

STOCKHOLM--Volvo posted forecast-beating third-quarter earnings but said demand is beginning to normalize, with truck markets seen weakening next year.

The Swedish truck maker said Wednesday that truck deliveries rose 4% in the third quarter, but that order intake fell 27%, reflecting a gradual normalization of demand and the company's continued gradual opening of order books.

Supply disturbances affected productivity and costs in the quarter, but had limited effect on deliveries, it said.

Volvo reported a net profit of 14.09 billion Swedish kronor ($1.29 billion) compared with SEK8.63 billion a year earlier as sales rose 15% on year to SEK132.41 billion.

Analysts polled by FactSet had seen a net profit of SEK12.05 billion on sales of SEK127.05 billion.

The company reported an adjusted operating margin of 14.4% from 10.3%.

"We have successfully mitigated cost inflation with price management and continued to handle disturbances in the supply chain," Chief Executive Martin Lundstedt said.

"We expect our major truck markets to continue to be strong throughout this year as we continue to deliver from our large order books to customers, but forecast lower market levels for next year.

Volvo raised its 2023 truck market forecasts for Europe and China, and maintained guidance in other regions.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

October 18, 2023 02:16 ET (06:16 GMT)

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