Volvo’s profits and sales for the second quarter surpassed analysts’ estimates, thanks to increased demand for the new models.
The EBIT of 3.26 billion kronor ($505 million), surpassed analysts’ estimates of 3.22 billion-krona, and the revenue of 72.8 billion kronor, was higher than the expected 1.6 billion-krona. Beginning with 2012 Volvo began introducing versions of the FH model line in an attempt to stem losses in Europe, where industrywide sales have dropped 13%.
“The results were slightly better than I expected, as pricing held up surprisingly well, considering the poor market conditions,” Hans-Peter Wodniok, a Frankfurt-based analyst at Fairesearch GmbH & Co said by phone.
Volvo’s EBIT in the second quarter fell 58%, as it lost 1.21 billion kronor in the exchange-rate moves. Revenue dropped 12% and deliveries fell 4.3% to 51,984 units. CEO Olof Persson said the automaker might increase production in Europe thanks to the ‘healthy’ backlog.
Earlier this month Volvo Cars named Bernard Bradley the automaker’s new head of global sales, after he served as Kia Europe’s sales chief. Volvo relies on Bradley to bring a boost in the company’s global sales, which have not seen a major increase for the past 8 years as the automaker heavily relies on the crisis affected European region.