net profit increases in the first quarter due to rising prices

Swedish carmaker Volvo Group announced on Wednesday a 9.9% rise in its first-quarter net profit thanks to higher prices, against a backdrop of flat sales. “Demand remained normal in the first quarter at good levels in many markets.†after record demand in 2023, said CEO Martin Lundstedt, was quoted in a press release. Net profit reached 14.1 billion kroner (1.2 billion euro) during the quarter, compared to 12.9 billion a year earlier on stable sales of 131.2 billion SEK (11.3 billion euro).

“The price charged has continued to increase, especially due to the price increase that we have gradually implemented., added the boss of the Swedish group. Operating profit fell slightly to 18.2 billion crowns but higher than the 17.2 billion crowns expected by analysts polled by Bloomberg. In the first quarter, Volvo Trucks delivered 55,470 trucks, 10% less than last year in the same period and its total intake decreased by 19%, to 48,701 trucks.

The group explains that it has reduced its production capacity in Europe but, on the other hand, the delivery and consumption of the order “has increased significantly” in Brazil. The Swedish manufacturer had warned during its annual results that demand was slowing due to a drop in travel volumes, post-Covid, and a weak global economy. Volvo Group, the world’s number 2 in heavy goods vehicles behind Germany’s Daimler, has been separate from the Volvo Cars manufacturer since 2000. The group is, among other things, the owner of the Renault Trucks brand.