The Volvo Group said its Truck unit returned to profitability in the first quarter, with income up to about $200,000 during the first quarter, compared to a loss of about $334,000 during the year-ago quarter.
The Sweden-based company attributed the gains to a boost in orders, particularly in Asia, South America and Europe.
Net orders were up 15 percent during the first quarter from the fourth quarter of 2009 and by 118 percent from the year-ago quarter.
"The improved profitability is an effect of substantially reduced costs, increased production and a good performance in South America," said Leif Johansson, CEO. "We are now taking important steps to further strengthen our truck operations' competitiveness through the launch of several new products."
In South America, net orders rose by 163 percent from the first quarter of 2009. In North America, orders gained 19 percent from the first quarter 2009. Volvo also said truck sales were up 4 percent during the quarter.
"In North America, demand for new trucks remained low in the first quarter, but demand for used trucks has increased," he said. "We anticipate that the demand for new trucks in North America will improve in the second half of the year and that the gradual improvement we have seen in Europe will continue. Accordingly, we maintain our earlier outlook that the truck market will have total growth for full-year 2010 of approximately 10 percent in Europe and 20-30 percent in North America."
The Sweden-based company attributed the gains to a boost in orders, particularly in Asia, South America and Europe.
Net orders were up 15 percent during the first quarter from the fourth quarter of 2009 and by 118 percent from the year-ago quarter.
"The improved profitability is an effect of substantially reduced costs, increased production and a good performance in South America," said Leif Johansson, CEO. "We are now taking important steps to further strengthen our truck operations' competitiveness through the launch of several new products."
In South America, net orders rose by 163 percent from the first quarter of 2009. In North America, orders gained 19 percent from the first quarter 2009. Volvo also said truck sales were up 4 percent during the quarter.
"In North America, demand for new trucks remained low in the first quarter, but demand for used trucks has increased," he said. "We anticipate that the demand for new trucks in North America will improve in the second half of the year and that the gradual improvement we have seen in Europe will continue. Accordingly, we maintain our earlier outlook that the truck market will have total growth for full-year 2010 of approximately 10 percent in Europe and 20-30 percent in North America."
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