STOCKHOLM (AFP) – Swedish truck-maker Volvo Group reported yesterday a slightly lower profit for 2022 despite rising sales and warned of more supply chain woes and energy costs this year.
The auto industry has been plagued by a shortage of key parts, including semiconductors, since the global economy emerged from COVID lockdowns in 2020.
“The situation in the global supply chain for components is still unstable, characterised by disruptions and unpredictability,” Chief Executive Martin Lundstedt said in the company’s annual report.
“We will therefore continue to have disturbances, stoppages and extra costs,” he added.
For the full year, Volvo reported net sales of SEK473.5 billion, a 27-per-cent jump from 2021 and higher than forecast by analysts surveyed by Bloomberg.
Net profit fell from SEK32.8 billion in 2021 to SEK32.7 billion in 2022, below a Bloomberg forecast.
The company also reported a significant drop in net orders, falling to SEK217.8 billion in 2022 from SEK262.9 billion in 2021.
“In order to manage order book quality and the cost inflation, we have continued to be restrictive in slotting orders for production too far into the future,” Lundstedt said.
