STOCKHOLM, April 17 Reuters Swedish truck maker AB Volvo reported on Wednesday a smaller drop than expected in firstquarter adjusted operating profit and said demand in the quarter had continued to normalise.

Adjusted operating profit was 18.2 billion crowns 1.66 billion against a yearearlier 18.6 billion and a mean forecast in an LSEG poll of analysts of 16.9 billion.

Volvo reiterated its forecasts for both the total European and the total North American heavy truck markets, for 280,000 and 290,000 new units this year, respectively.

In Europe, order backlogs and lead times have normalized. Through the quarter we gradually reduced production capacity in Europe and anticipate to be in balance during Q2, CEO Martin Lundstedt said in a statement.

In North America, Mack Trucksʼ order backlogs are still extended, partly due to the strike in November, which pushed already sold production slots from 2023 into 2024, he said, adding that demand had in the quarter continued to normalise at good levels across many markets.

Reporting by Marie Mannes, editing by Anna Ringstrom

Source Reuters