Earnings Watch: Daimler, Volvo, Paccar Profits All Move Higher
Earnings for truck makers moved higher in the first quarter of the year, with three on Tuesday showing big improvements from the same time in 2016.
Volvo AB’s first quarter profit increased 25% from a year earlier, totaling 4.73 billion Swedish kronor, or $533.7 million, according to MarketWatch, beating analysts’ expectations of 3.56 billion kronor.
Sales during the period rose 8% to 77.37 billion kronor, compared with 71.71 kronor billion a year earlier The better numbers were driven by increased orders of both trucks and construction equipment.
“After the downwards correction in the long haulage segment in 2016, the North American [truck] market seems to be bottoming out. We see positive signs of increased order activity,” said Martin Lundstedt, president and CEO.
He noted that the truck market in Europe remained strong in the first quarter of the year and demand there for heavy duty trucks is expected to be about the same as it was in 2016.
In North America, Lundstedt said dealer inventories of new trucks are at healthy levels, however inventories for used long-haul trucks remain elevated.
“This continues to dampen demand for new trucks in this segment despite indications of an improving freight environment. Demand in the refuse and construction segments remains good. Retail sales for the industry are forecasted to be lower 2017 compared to 2016,” he said.
North American truck deliveries were down 34% compared to a strong first quarter 2016. Both Volvo Trucks and Mack gained market shares, with Volvo Trucks reaching 9.4% and Mack hitting 8.9%. The order intake increase of 27% was driven by both Volvo Trucks and Mack reflecting higher activity within the construction segment and a somewhat improved freight environment combined with low dealer inventories, according to Volvo
Paccar Earnings Rebound
Back in the U.S., the parent to Peterbilt and Kenworth reported a big turnaround. Paccar Inc. had …Read the rest of this story
