Operating profit was SEK 13.5 billion for the second quarter, corresponding to an operating margin of 10.7 percent. This compares with a profit of SEK 10.0 billion in the corresponding quarter last year.
A very strong quarter for the Volvo Group, not least given the circumstances in the world with both a lot of concern and uncertainty, says Martin Lundstedt to TT.
He points to strong service operations as one of the explanations for the result:
We have been investing in our service operations for a long time, meaning that service to our customers is growing organically by seven percent. We can see that when we have a good service operation, we get even greater customer satisfaction.
Substantial lift
Turnover rose to SEK 126.3 billion, compared with SEK 122.9 billion a year earlier.
Truck orders rose sharply, to 63,412 from 47,761 trucks in the second quarter of last year. Truck deliveries rose to 55,687 from 52,764 trucks.
North America is still the strongest market for the truck giant, and orders rose by 122 percent to 18,302 trucks. But the European market is catching up.
Europe continues to perform strongly at high levels and we are also raising the market forecasts for Europe. This is a statement of strength, says Lundstedt.
Affected by the war
Unlike the first quarter, the company is now affected by the war in the Red Sea, Lundstedt says, referring to increased material and shipping costs.
"There is an underlying inflationary pressure on these factors, not least in terms of freight, but then indirectly with the uncertainty around energy prices affecting material costs. We have seen that and we are working very actively on that," he says, continuing:
We also need to work on price adjustments, but also continue to have very good control over our costs and control over our own efficiency.
In the long term, he believes that the unrest in the Strait of Hormuz could accelerate electrification and calls for coordinated measures in Europe. In Sweden, Lundstedt hopes for long-term conditions for the industry:
In this context, we are demanding major investments, both from the private and public sectors, in terms of the conditions for Sweden to maintain its competitiveness. In this regard, we must think of Sweden as a company. What should the Swedish balance sheet look like when it comes to energy infrastructure?
