Volvo Q1 profit down, but better than expected

[1]

Volvo, the world's second-largest truck maker, reported on Thursday a slight drop in first quarter net profit, though the figure was better than analysts had expected.

From January to March, Volvo posted net profit of 4.09 billion kronor (461 million euros, $608 million), down by 2.1 per cent from the same period a year earlier but better than the 3.6 billion kronor predicted by analysts.

Sales were up 10 per cent at 78.83 billion kronor, spearheaded by activity in North America where truck sales gained 42 per cent and construction equipment sales jumped 111 per cent, the group reported.

In Japan, hit by a tsunami a year ago, truck sales were up 45 per cent in the first quarter of 2012 owing to rebuilding activity, Volvo said.

At the Stockholm stock exchange, Volvo shares were up 4.14 per cent in morning trading, while the market had gained 0.35 per cent overall.