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Volvo Group saw record profits in the second quarter of this year showing further signs of an economic recovery for the world's second largest truckmaker.
Leif Johansson, President and CEO commented on the results saying in statement: "During the second quarter, the Volvo Group's sales continued to grow as an effect of a continued recovery in the Group's mature markets and continued strong demand in emerging markets."
Consolidated sales grew 15 per cent compared with the second quarter of 2010 and amounted to US$12.5 billion. Operating income amounted to US$1.2 billion with an operating margin of 9.7 per cent.
In Q2, net sales increased by 15 per cent to US$12.5 billion compared to US$11 billion in the preceding year. Operating income was negatively impacted by effects from the earthquake and tsunami in Japan in a total of approximately US$64mn, of which SEK US$100mn in Trucks and SEK US$48mn in Construction Equipment.
Volvo saw strong profitability in its truck business with the truck division bringing in the highest operating income and operating margin so far for the Group in the second quarter.
During the Q2, the truck business continued its good development with sales rising 20 per cent to US$7.9 billion and operating income amounting to US$811mn which corresponds to an operating margin of 10.2 per cent.
Johansson added: "Our focus on environmentally-adapted trucks has taken a major step forward with Volvo FM MethaneDiesel. The truck is driven by up to 75 per cent gas and, with its fuel-efficient technical solution can significantly reduce CO2 emissions from long haul applications.
In conclusion, Johansson said:"Going forward, I am convinced that the Group will continue its positive development. Our intensive efforts to develop and launch a large number of new products that will reach the market in the next few years continue," said Leif Johansson.