Volvo AB (VOLVB), the world’s second-largest truckmaker, says it has recorded a 46 percent rise in fourth-quarter profits, mainly boosted by a surge in sales.
Income for the period amounted to SEK 4.8 billion in the recent quarter versus SEK 3.41 billion in the 2010 fourth quarter, and operating income rose to SEK 6.95 billion from SEK 5.52 billion in 2010.
CEO Olof Persson says that in 2011 Volvo “generated the highest net sales, the best operating income and the highest operating margin to date.”
Volvo, the world’s second-largest truck maker after Daimler AG (DAI.XE), said orders in the quarter declined to 57,700 trucks compared with 62,100.
The company said orders from Europe and South America declined while there was an increase in North America.
However, the group, which scaled back production plans and moved to cut temporary staff at the end of last year, struck a cautiously optimistic note about its home market.
“Demand for trucks in Europe declined during the autumn, but seemed to stabilize on a somewhat lower level towards the end of the year,” Chief Executive Olof Persson said in a statement.
He added the market in Brazil will be weak in the beginning of 2012, but the company believes it will recover gradually during the year.
Industrywide sales in 2012 will total 220,000 trucks in Europe and 250,000 in North America, the Gothenburg, Sweden- based manufacturer said today in a statement.