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Volvo: Higher-than-expected profit growth in the quarter

Swedish truck maker Volvo reported a bigger-than-expected rise in second-quarter profit, and said it had successfully mitigated the effects of supply chain disruptions and higher material costs.

The truck, construction equipment, bus and engine maker’s adjusted operating profit rose to 13.75 billion kroner ($1.3 billion) from 9.73 billion kroner a year ago, compared with 12.17 billion crowns that analysts expected.

However, the Swedish company stressed that the situation in the global supply chain for components such as semiconductors is still volatile and unpredictable.

“Therefore, we will continue to have interruptions and stoppages both in truck production and in other parts of the group,” CEO Martin Lundstedt said.

The company said backlogs for its trucks, which are sold under the Mack and Renault brands as well as under its own name, fell 8% year-on-year in the quarter.

Source: Capital

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