STOCKHOLM, July 19 Reuters Sweden39;s AB Volvo on Tuesday posted a biggerthanexpected rise in profit helped by strong demand for its trucks, but warned of continued supply chain issues.

A global shortage of components such as semiconductors and a lack of freight capacity have pressured truck makers after markets began to recover from the pandemicinduced demand slump.

The Gothenburgbased truck maker said it had successfully mitigated effects of supply chain disruptions and higher material costs through prices, adding that the situation for components was still unstable and unpredictable.

We will therefore continue to have disruptions and stoppages both in the production of trucks and in other parts of the Group, Volvo Chief Executive Martin Lundstedt said in a statement.

Adjusted operating profit at the maker of trucks, construction equipment, buses and engines rose to 13.75 billion Swedish crowns 1.3 billion from 9.73 billion a year ago, beating the 12.17 billion crowns seen by analysts in a Refinitiv poll.

Currency effects had a positive impact of 2.77 billion crowns year on year in the second quarter at the company, which competes with Germany39;s Daimler Truck and Traton.

Volvo said orders for its trucks, sold under brands such as Mack and Renault as well as its own name, fell 8 year on year in the quarter. It kept unchanged forecasts for the European and North American truck markets.

Volvo said earlier this month that it had begun laying off some of its…