Volvo's revenue beats expectations
On Tuesday, Volvo, Swedish truckmaker posted forecast-beating quarterly earnings as years of cost cuts as well as strong deliveries in the European Union helped to strengthen it against tumbling demand for commercial vehicles in the USA.
Volvo as well as its rivals Volkswagen and Daimler with its vast array of truck brands, have already been buoyed by soaring demand across Europe for the last year while struggling with a dip in orders in the United States and Brazil.
The company, the first of Europe's key major truckmakers to post second-quarter results, dared to scale back its outlook for North America, telling it expected industry-wide sales of 240,000 trucks compared with April forecast for 250,000.
However, while the market might face more challenges, earnings stood firm.
Adjusted operating earnings at Gothenburg-based Volvo edged up to $716.18 million or 6.13 billion Swedish crowns from a year-ago 5.98 billion, thus beating a previous forecast for 5.64 billion in Reuters survey of analysts.