Volvo upbeat as orders increase

WORLD number two truckmaker Volvo rolled out proof of surging market demand yesterday and reassured investors worried about cost pressures with forecast-beating profit margins.

The highly cyclical heavy-duty truck market has picked up strongly in recent quarters, with growth spreading out of emerging markets in Asia and Latin America to more mature markets.

Volvo said orders for its trucks rose 40 per cent and it raised its 2011 market outlook for both Europe and North America to between 230,000 and 240,000 units from 220,000.