July 24, 2013
“After a weak start to the year, the group’s sales and profitability recovered during the second quarter of 2013,” Olof Persson, Volvo’s chief executive said during the company’s earnings call Wednesday.
Volvo, which also makes Renault, Mack and UD Trucks brands, says orders of its trucks climbed 16 percent year-over-year in the second quarter, and more than 11 percent versus the first quarter.
Revenue fell 12 percent, while deliveries slipped 4.3 percent to roughly 52,000 units. Even though the company recoded a decline in deliveries, last quarter was 35 percent better than the previous quarter.
Volvo says the high level of orders over the past six months suggests that pre-buy purchases will continue to support demand in 2013 despite the unfavorable economic climate.
Second quarter sales fell to $11.2 billion, down from $12.8 billion the year before.
Mack’s second-quarter North American orders jumped 80 percent to 4,260, while Volvo Trucks’ North American orders gained 23 percent to 6,809.
North American deliveries slid 4 percent to 13,203 units, while sales dropped 7 percent to 11,568, the company said.