Volvo swings to profit in Q2 as demand picks up

Volvo swings to profit in Q2 as demand picks up
AP
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First Published: Thu, Jul 22 2010. 11 02 AM IST
Updated: Thu, Jul 22 2010. 11 02 AM IST
Stockholm: Swedish truck maker AB Volvo says it swung to a profit from a loss in the second quarter, helped by a pickup in demand and improved productivity.
The company says net profit for the quarter totaled 3.1 billion Swedish kronor ($420 million), up from a loss of 5.6 billion kronor in the same period a year ago.
The group said Thursday net sales increased by 27% to 68.8 billion kronor ($9.3 billion) from 54.0 billion in the second quarter 2009.
The bottom-line result sharply beat analysts’ expectations, despite the fact that sales were weaker than forecast.
Volvo’s CEO Leif Johansson said the pickup in sales helped improve the company’s profitability, combined with strict cost control and “a good productivity development.”
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First Published: Thu, Jul 22 2010. 11 02 AM IST