Truckmaker Volvo profit beats forecast, sets shareholder payout
Reuters
Published Feb 03, 2021 01:34AM ET
Updated Feb 03, 2021 02:21AM ET
STOCKHOLM (Reuters) - Swedish truckmaker AB Volvo reported fourth-quarter core earnings well above analysts' expectations on Wednesday, raised its forecasts for some of its main markets and rolled out a hefty shareholder payout amid a broad recovery in demand.
But Volvo also cautioned that the rebound, along with a global chip shortage, had left its supply chain under pressure which would lead to production disturbances and higher costs at least during the current quarter.
Adjusted operating profit at the maker of trucks, construction equipment, buses and engines rose to 10.93 billion Swedish crowns ($1.30 billion) from 9.22 billion a year earlier, above the 8.77 billion seen by analysts according to Refinitiv data.
"Both the transport activity and the construction business are back at levels on par with the prior year in most markets, which has improved the confidence in the future among our customers," Volvo Chief Executive Martin Lundstedt said in a statement.
Order intake at Volvo, which rivals Germany's Daimler (OTC:DDAIF) and Traton, amounted to 86,069 trucks, up 61% from the year-ago quarter on the back of a broad recovery.
The company, which abandoned plans to pay annual and extra dividends last year as the first wave of the COVID-19 pandemic struck but still retained a vast cash pile, said it would make a total shareholder payout of 15 crowns per share for 2020.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.