A surge in orders drove Volvo (VLVLY.US) to raise expectations for the European truck market, while its business in America simultaneously recovered.

Swedish manufacturer Volvo (VLVLY.US) announced on Friday that it has raised its full-year forecast for the European truck market due to a significant increase in first quarter orders. At the same time, commercial activities in the Americas are also improving. Data shows that Volvo's first quarter orders increased by 14% compared to the previous year. As a result, the company has raised its full-year forecast for the European heavy-duty truck market from 305,000 to 310,000 units. Additionally, Volvo has also raised market expectations for India and Brazil, and noted growth trends in the global construction market. Despite this, the company's net sales and operating profit in the first quarter decreased compared to the previous year, due to lower delivery volumes in South America and Asia, as well as several weeks of production stoppages in North America. Volvo stated that the recent increase in orders in North America means that production in the region will return to better balance starting from May. Volvo and its competitors, Daimler Truck Holding AG and Traton SE, are gradually recovering from the previous period of low demand. As early as January this year, Volvo had already raised its forecast for the European heavy-duty truck market once due to signs of stabilization at the end of last year. The company stated that the Middle East conflict has not caused significant disruptions to Volvo's supply chain so far, but will closely monitor its potential impact on future demand.