Volvo maintains its ratings despite a decline in European ratings by Investing.com

Investing.com – Swedish commercial vehicle maker Volvo ( ST: ) showed a solid first quarter thanks to higher prices. Despite the drop in orders in Europe, the company managed to keep its margins up significantly.

Margins solid despite declining orders

Despite the difficult market conditions in Europe, Volvo managed to keep its levels stable in the first quarter. Company boss Martin Lundstedt reported that demand was normal to stable, despite the company gradually reducing its production capacity in Europe. Lundstedt expressed optimism about the prospects for the next quarter, in which production capacity is expected to match.

Positive development in operating results

The numbers speak for themselves: sales remained almost unchanged in the reporting quarter at around 131.2 billion Swedish kroner, while operating results rose by around 5% to around 18.2 billion kroner. This development exceeded stock market expectations.

Analysis and perspective

Analysts like Jose Asumendi of JPMorgan (NYSE: ) are positive about the quarterly results. Although order intake was weak, there is hope that the order situation will improve in the second half of the year.

Truck shipments were down 10% and incoming orders were down 19%.

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