Solid Volvo report lifts shares 5%

Good demand for Volvo's trucks in the face of macroeconomic uncertainty led to record second-quarter operating profit and boosted its shares yesterday. A soft point was construction equipment, where it downgraded its market outlook due to a slowing Chinese market. Volvo, the world's second largest truck maker after Germany's Daimler AG, was slammed by a sudden demand stop during the global crisis, but has boomed in the pick up. "During the second quarter, the Volvo Group's sales continued to grow as an effect of a continued recovery in the group's mature markets and continued strong demand in emerging markets," Chief Executive Leif Johansson said. Johansson, due in September to leave the company after 14 years at its helm, said group sales were now at the same level as before the financial crisis, with profitability at its highest level so far. The Swedish group, which makes heavy-duty trucks under the Renault, Mack, UD Trucks and Eicher brands, reported operating profit rose 60 per cent to 7.65 billion crowns (Dh4.45 billion), compared with a forecast 7.67 billion in a Reuters poll. Its shares opened up about 5 per cent. In contrast, Swedish rival Scania saw weaker-than-expected margins bite into quarterly earnings on Thursday. From / Gulf News