Truckmaker Volvo's revenue exceeds forecast and units shareholder payout
© Reuters. FILE PHOTO: IAA Truck Show in Hanover
STOCKHOLM (Reuters) – Swedish truck maker AB Volvo on Wednesday reported core fourth-quarter earnings well above analysts' expectations, raised its forecasts for some of its main markets, and launched a hefty shareholder payout amid a broad recovery in demand .
However, Volvo also warned that the recovery coupled with a global chip shortage had put pressure on the supply chain, which would lead to production disruptions and higher costs, at least in the current quarter.
The adjusted operating profit of the manufacturer of trucks, construction equipment, buses and engines rose from 9.22 billion in the previous year to 10.93 billion Swedish crowns (1.30 billion US dollars), which was above the 8.77 billion, according to the analysts Recorded information from Refinitiv.
"Both the transport activity and the construction business in most markets are back on the level of the previous year, which has improved our customers' confidence in the future," said Volvo CEO Martin Lundstedt in a statement.
Incoming orders at Volvo, which competes with the German companies Daimler (OTC 🙂 and Traton, totaled 86,069 trucks. This corresponds to an increase of 61% compared to the same quarter of the previous year, which is due to a broad recovery.
The company, which had abandoned plans to pay annual and additional dividends last year when the first wave of the COVID-19 pandemic broke out, but was still holding a huge pile of money, said it had a total payout of 15 crowns for 2020 per share for shareholders.
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