Volvo AB Q2 Sales Grow 24%; Warns On Supply Chain Challenges

Swedish truck manufacturer Volvo AB VLVLY reported second-quarter FY21 sales growth of 24% year-on-year to $10.42 billion (1$ = 8.70 Swedish Krona as of July 20).
Revenue from Vehicles increased 41% Y/Y, amounting to $7.9 billion. Net sales from Trucks grew 28% Y/Y, bus sales jumped 60% Y/Y, and that of Volvo Penta posted a 58% hike.
Net sales excluding UD Trucks in Europe jumped 42% Y/Y to $4.53 billion and the South American region raked in the sales growth of 90% Y/Y.
Total truck order intake jumped 119% Y/Y to 57,961 in the quarter.
The gross margin improved to 24.0%.
The adjusted operating margin for the quarter was 10.7%, with $1.12 billion in operating income.
Operating cash flow in industrial operations totaled $682 million.
The company warned of disruptions in truck production in H2 FY21 due to semiconductor shortage as supply chain woes continue.
Price action: VLVLY shares closed at $23.24 on Monday.

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