Order intake up as customers replace aging fleets
European supply chain disturbances ease
North America still facing unstable supply chain
Truck market hike bodes well for H2 analyst

STOCKHOLM, April 20 Reuters Sweden39;s AB Volvo lifted its outlook for key heavyduty truck markets in Europe and North America this year on Thursday as it reported a 32 yearonyear rise in order intake for the first quarter.

The maker of vehicles under brands such as Mack Trucks and Renault as well as its own name had already preannounced record operating earnings for the first quarter last week that were well above market expectations.

Volvo, a rival of manufacturers such as Daimler Trucks and Traton, forecast 2023 heavy truck sales in Europe and North America of 320,000 for each region. Its previous forecast had been for 300,000 in both regions.

Disturbances in the European supply chains have not been as extensive as in the autumn and have contributed to increased productivity, Chief Executive Martin Lundstedt said in a statement, adding however that the supply chain remained unstable in North America, hampering production there.

Handelsbanken analyst Hampus Engellau said the raised truck outlook sent a strong message that Volvo sees the secondhalf of 2023 as a good market for its trucks.

If one has to search for problems during the quarter, there are still supply chains in North America, but still the operating leverage was quite decent, so I would say we see improvement…