Truck maker Volvo says profits back near pre-pandemic levels

volvo 666 - Truck maker Volvo says profits back near pre-pandemic levels

STOCKHOLM: Swedish truck maker Volvo Group said 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.

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, characterized 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.”

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