Volvo Truck’s Quarterly Income Surges

Volvo Group reports its first-quarter sales in 2014 climbed 13% to 65.6 billion kronor (€7.2 billion).

The Swedish truckmaker's operating income jumped to 2.3 billion kronor (€253 million) from 482 million kronor in the same period last year. Net income swung to 1.1 million kronor (€126 million) from a 248 million kronor loss a year earlier.

The group's combined sales of trucks and construction equipment grew 13% to 65,600 units, led by increases in western Europe (+10% to 19,900 units), North America (+28% to 16,400) and Asia (+11% to 13,900).

But Kia, which is 34% owned by Hyundai Motor Co., cautions that further strengthening of the won will hurt second-quarter results. The two companies said earlier this year that their combined sales growth this year is likely to be the slowest in more than a decade.