STOCKHOLM: Volvo said on Friday that profit increased in 2021 as customer activity returned to pre-pandemic levels, but warned that the global supply crunch would continue to disrupt production.

“Growing transport volumes and improving construction activity increased our customers’ fleet utilisation, which was back on pre-Covid levels” as evidenced by demand for both new and used products, Chief Executive Officer Martin Lundstedt said in the annual report.

“However, the situation in the global supply chain for semiconductors and other components remains unstable, characterised by disruptions, unpredictability and lack of freight capacity.

“We will therefore continue to have disruptions and stoppages both in the production of trucks and in other parts of the Group,” he added.

“The high spread of Covid-19 globally is putting additional pressure on the already strained supply chain and production system,” Lundstedt warned.

Net profit for 2021 rose to 32.8 billion kronor (3.1 billion euros, $3.45 billion), an increase of 70 percent compared with the same figure for 2020.