Volvo Group posted improved sales and profitability for the first quarter Tuesday.
Global volumes of heavy-duty and medium-duty trucks fell 4 percent, led by a North American market that Volvo Group President and CEO Martin Lundstedt says “seems to be bottoming out.”
“We see positive signs of increased order activity,” he adds.
Volvo Group’s net sales increased by 8 percent to $8.7 billion in the first quarter. Vehicle sales increased by 3 percent, primarily on good demand for products in Europe and Asia.
North American heavy-duty truck industry orders increased during the quarter (from 8,892 to 11,334), and “dealer inventories of new trucks are at healthy levels,” Volvo said through its earnings release.
“However, inventories for used long- haulage 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.”
In North America, deliveries were down 34 percent compared to the same quarter last year.
