Volvo AB, the second-biggest heavy trucks maker in the world and a company that now has no relation to Volvo Cars announced a rise of 9.2% for its latest three-month earnings.
The company, as the heavy trucks sector was also seriously impacted by the last global recession, has embarked on a very ambitious cost-savings strategy, which triggered a series of manufacturing streamlines and administrative job cuts.
“With the closing of the second quarter, we are halfway in the strategy program that will continue until the end of 2015 and which shall increase the Volvo group’s profitability,” Chief Executive Officer Olof Persson said in a statement. “The program is progressing according to plan.”
Second-quarter EBIT (earnings before interest and taxes) went up to 3.56 billion kronor ($521 million) – although the profit was not as high as some analysts predicted, with Bloomberg averaging a 4.28 billion-krona figure for the company.
The quarter’s sales amounted to 53,223 vehicles, rising 2.4% year-over-year; while for the same period new orders for trucks skidded 6% to 52,974 units. The company, which sells trucks under the Volvo, Renault, Mack (North America) and Eicher (India) brands, saw its net income rise by 23% to 2.47 billion kronor.The group’s efficiency strategy has a cost savings goal of 4 billion kronor annually until the end of 2015.