Swedish truck maker Volvo said on Wednesday that its net profit sped ahead by 60 percent in 2017, as strong global demand for heavy goods vehicles drove up sales to a new record. Investors cheered the latest earnings numbers, with Volvo's share price showing a gain of 1.2 percent on the Stockholm stock exchange in early afternoon, while the rest of the market was flat.
Volvo said in a statement that its net profit soared to 21 billion kronor (2.0 billion euros, $2.67 billion) for the full year, as sales jumped by 11 percent to 334 billion kronor. Operating income rose by 46 percent to 30.3 billion. "In 2017 the Volvo Group achieved its highest sales and operating income in history," said chief executive Martin Lundstedt. "We also improved our profitability with an operating margin of 9.1 percent," compared to 6.9 percent in 2016, he added. Sales rose on all continents and in all business areas.