Volvo returns to profit in second quarter

Swedish truck maker Volvo said Thursday it returned to profit in the second quarter of this year from a big loss a year earlier thanks to stronger sales and lower costs.

Second quarter sales rose 27 percent to 68.8 billion kronor (about 9.3 billion U.S. dollars) from 54.0 billion kronor (7.3 billion dollars) in the same period of 2009, the group said in its quarterly report.

"The group's profitability continued to improve thanks to the sales increase, strict control over our costs and a good productivity development in our industrial system," Leif Johansson, president and CEO of Volvo Group, said.

The sales trend was particularly strong in Asia and South America as a result of favorable market development, but volume levels in Europe, North America and Japan were still at low levels, he said.

Source: Xinhua