Login

Truck Maker Volvo Says Profits Back Near Pre-Pandemic Levels

Volvo said in a statement that bottom-line net profit rose to just over seven billion kronor (700 million euros, $810 million) in three months to September, compared to 5.7 billion kronor in the same period a year earlier.
Calendar-icon

By AFP

clock-icon

1 mins read

Calendar-icon

Published on October 31, 2021

Follow us on

google-news-icon
Story

Highlights

    Swedish truck maker Volvo Group said Thursday that profits were back up close to pre-pandemic levels in the third quarter, even if a global semiconductor shortage weighed on business.

    Volvo said in a statement that bottom-line net profit rose to just over seven billion kronor (700 million euros, $810 million) in three months to September, compared to 5.7 billion kronor in the same period a year earlier.

    Nevertheless, the figure falls slightly short of net profit for the third quarter of 2019, before the global pandemic hit.

    "The quarter was affected by shortages of semiconductors, other components and freight capacity resulting in production disturbances and increased costs," said chief executive Martin Lundstedt.

    volvo trucks

    Volvo Group is facing a shortage of electronic components that is preventing it from fulfilling orders.

    Like the entire automotive sector, Volvo Group is facing a shortage of electronic components that is preventing it from fulfilling orders.

    The coronavirus pandemic has disrupted global supply chains, leading to bottlenecks in the components, wood, plastics and steel markets, crippling many industries.

    "The situation in the global supply chain for semiconductors and other components remains unstable, characterised by disruptions, unpredictability and a lack of freight capacity," Lundstedt said.

    "We will therefore continue to have disruptions and stoppages both in the production of trucks and in other parts of the group."

    Stay updated with automotive news and reviews right at your fingertips through carandbike.com's Google News

    Related Articles

    Latest News

    Popular Volvo Models