Truck sales help boost Volvo profits 59%

Volvo said its profits rose 59% for the second quarter, attributing much of the rise to cost savings and new truck sales. The company posted a net profit of 1.72 billion kronor ($210 million) for the three months ending June 30, compared with a profit of 1.08 billion kronor for the same period last year.Revenues declined 10% to 44.6 billion kronor ($5.4 billion) from 49.3 billion kronor a year ago."After great uncertainty in the first quarter concerning the market trend, there are now signs of stabilization," said Leif Johansson, chief executive officer of Volvo.Johansson said credit for the increase in profits was due mostly to truck sales, which account for about 35% of total revenues.Volvo's share of the heavy truck market in Western Europe improved to 28.3% through May from 27% a year earlier. Its market share in North America through June improved to 10% from 7.9%, due mostly to demand for Volvo’s new VN truck model."While we do see signs of a more stable market trend, we feel it is too soon to change our outlook for the full year. We still expect a market of approximately 200,000 heavy trucks in Europe and 170,000 in North America," Johansson said in a statement.Volvo Buses sales volume continued to decline due to weak demand in all markets and stiff price competition.Volvo sold its car division to Ford Motor Co. in 1999.

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