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Volvo Group's profits double as currency effect sets in

(Xinhua) Updated: 2015-10-24 10:30

Volvo Group's profits double as currency effect sets in

A worker scrubs the logo at Volvo Group's assembly plant in Kaluga, Russia, Jan 20, 2009. [Phoro/IC]

STOCKHOLM - Global manufacturer Volvo Group saw profits double in the third quarter compared to the same period last year, according to earnings posted on Friday.

The Swedish truck and construction manufacturer saw sales rise to $8.61 billion, a 9 percent increase on the same period in 2014, and raised its forecast for the European truck market this year.

"We continue to strengthen our profitability in the third quarter of the year," acting CEO Jan Gurander said in a statement, though he noted that total sales increased only 1 percent when adjusted for currency movements.

Volvo Group saw a quarter-on-quarter sales increase of 11 percent in its core market of Western Europe and a 28 percent hike in North America.

However, sales over the same period dropped by 33 percent in South America, with a 53 percent plunge in the Brazilian market.

Profits, meanwhile, surged to $364 million, double the figure Volvo Group posted for the third quarter of 2014.

"The work on the efficiency program is running according to plan measured in local currencies," Gurander said before reaffirming plans to outsource the company's IT operations and sell off its IT consultancy wing.

The company's operating income rose over 70 percent compared to the same period last year to $599 million, although that figure was boosted by currency exchange rates.

Volvo Group replaced former CEO Olof Persson in April, with Martin Lundstedt expected to take the helm from November 1 this year.

 

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