Volvo Group reported net sales of SEK90.6 billion in the second quarter, about $10.4 billion, an increase of 24 percent compared with the same quarter a year prior, when net sales were down 38 percent due to the Covid-19 pandemic.
“Demand for the Volvo Group’s products and services continued to be good. In a quarter when shortages of semiconductors as well as other production materials resulted in substantial production stoppages affecting both volumes and costs negatively, we achieved an adjusted operating margin of 10.7 percent,” CEO Martin Lundstedt said in a statement.
Lundstedt said Volvo Group “delivered solid performance while managing supply-chain challenges” that linger. He added that the company will continue to transition to sustainable solutions and that the “electrification of our transport and infrastructure industries are key components in the transition to a more sustainable society.”
Volvo Penta had a strong second quarter, posting net sales of SEK3.9 billion ($448 million), an increase of 58 percent. Broken down by division, sales of engines were up 82 percent, and related services saw a 45 percent increase.
The company said that its yacht and commercial segments appear to have fully recovered. For the quarter, orders increased by 102 percent to 12,857 units, and deliveries were up 68 percent to 11,674 units.
The group acquired Norwegian e-battery and e-driveline supplier ZEM during the quarter as part of the company’s plans to “expand and accelerate” its capabilities in marine electromobility.
In addition, its Assisted Docking system is available to boatbuilders for OEM installations. Last month, Italy-based Absolute Yachts said it was the first builder to offer Assisted Docking across its entire model range.