Shares of Volvo AB SER (STO: VOLV) soared 4% to trade near its record highs after the Scandinavian producer of cars and trucks reported better-than-expected 3Q results.
Volvo reported an adjusted operating profit of 7.22 billion crowns ($813.2 million) for the third quarter. This is lower than 10.89 billion reported a year ago but comfortably higher than the analysts’ mean forecasts of 5.82 billion.
Net profit was reported at 5.72 billion Swedish kronor ($646 million), which is 23% lower than to 7.46 billion reported in 2019. Net order intake number for the truck unit sits at 57,530 trucks, which is 61% higher than a year ago.
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“In the last two quarters, our organization and business partners have shown great volume flexibility by first handling a dramatic volume decline and then a steep recovery with maintained good productivity,” CEO Martin Lundstedt said in a statement.
However, the CEO reiterated concerns related to the spread of COVID-19 as the uncertainty about future developments remains “considerable”.
Volvo share price gapped around 4% before erasing a big portion of these gains to trade 0.54% on the day at 177.85.
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