STOCKHOLM–Swedish truck maker Volvo AB
on Thursday posted slightly lower-than-expected third-quarter earnings as truck demand remained strong in Europe and North America but costs continued to increase.
The company reported net profit of 8.63 billion Swedish kronor ($769.3 million), compared with SEK7.05 billion a year earlier, shy of the FactSet consensus forecast of SEK8.71 billion.
Sales rose to SEK114.92 billion, beating a forecast of SEK107.51 billion.
Truck deliveries rose 21% in the quarter, while order intake rose 27%, the company said.
“The situation in the the global supply chain for components is still unstable, characterized by disruptions, unpredictability and lack of freight capacity,” Chief Executive Martin Lundstedt said.
“Higher input costs, in particular energy prices, are putting our supplier base under financial pressure. We will therefore continue to have disruptions, stoppages and extra costs.”
Volvo trucks continued to gain market share in most markets, but to manage order books and cost inflation it continues to be restrictive in slotting orders for production, the company said.
Volvo backed its 2022 truck market forecasts for Europe, North America and China, but raised its Indian market forecast to 330,000 and cut its Brazilian outlook to 95,000.
Write to Dominic Chopping at email@example.com
Corrections & Amplifications
This item was corrected at 0701 GMT to reflect Volvo AB posted slightly lower-than-expected third-quarter earnings. The original version incorrectly said earnings were slightly higher-than-expected in the lead paragraph.