Volvo Trucks Meets Q2 Profit Expectations
Published On Jul 19, 2016
Swedish firm Volvo Trucks did some cost cutting last year after it failed to meet the profit margins and has finally reaped the dividend for that. The company just shared the Q2 earning, the first to do so in Europe and has met all its targets with ease. An earning of US $716.18 million in the second quarter has made the management upbeat. Volvo has further tightened its purse strings to ensure more revenue growth as the current time is still not favourable for promoting trucks sales.
Volvo Trucks CEO Martin Lundstedt said in a statement, “In the second quarter we were able to continue the improvement of our underlying profitability despite declining sales, thanks to positive cost development.” Most of the truck brands including Volkswagen, Daimler, Volvo and others are fighting with tough times in trucks sales after demand is fading in the U.S. in Brazil. Daimler has also done some job cuts in Brazil for reducing operational costs. However, the companies managed to stay steady by surging demand in Europe.
As far as Volvo is concerned, the auto maker has done well according to the market situation in North America. It has sold 240,000 trucks compared to its forecast of 250,000 in April. However, the challenges are still there to conquer.