Quarterly operating profit up almost 21
Result was slightly below analyst expectations
Shares down 4

Jan 26 Reuters Swedish truck maker AB Volvo39;s supply chain struggles are set to linger, it said on Thursday after reporting fourthquarter core profit close to analyst expectations and proposing an extra dividend.

Volvo and rivals such as Germany39;s Daimler Trucks have struggled with a global shortage of crucial components such as semiconductors, broader supply chain issues and strained freight capacity resulting from the COVID19 pandemic and Russia39;s war on Ukraine.

The Swedish company39;s adjusted fourthquarter operating profit rose almost 21 to 12.2 billion Swedish crowns 1.19 billion against an average forecast of 12.5 billion crowns in a Refinitiv poll of analysts, but Chief Executive Martin Lundstedt said the business continues to be affected by a volatile supply chain for components.

Lundstedt also highlighted pressures on Volvo39;s supplier base from high energy prices and input costs.

We will therefore continue to have disturbances, stoppages and extra costs in the production of trucks and in other parts of the group, his statement said.

Supply issues have affected lead times, with soaring inflation and the energy crisis complicating matters.

Long lead times have hampered the whole sector. German truck maker Traton has had to restrict new orders despite selling 300,000 vehicles for the first time last year.

Volvo, which has also been forced to…