Volvo, Scania profits surge on heavy truck demand

Volvo AB and Scania AB, two of Europe’s biggest commercial-vehicle manufacturers, reported a surge in first-quarter profit as heavy-truck demand rebounds. Volvo’s net income more than doubled to 4.09 billion kronor ($670 million), the Gothenburg, Sweden-based company said today. Scania, the Swedish truckmaker controlled by Volkswagen AG, said profit rose 77 per cent to 2.51 billion kronor.

The increase in purchases from freight companies prompted Volvo to raise its industry forecast for heavy truck sales in North America and Europe. Vehicle makers are adding capacity after slashing jobs and slowing production as the economic slowdown following the 2008 financial crisis sapped sales. Volvo rose as much as 4.90 kronor, or 4.3 per cent, to 118.50 kronor and was up 2.4 per cent to 116.30 kronor as of 1:19 p.m. in Stockholm trading. Scania shares were 1.1 per cent lower.