Swedish truck maker AB Volvo reported a 31% increase in its sales revenue for the fourth quarter of 2022 to $13.04 billion despite facing a global shortage of crucial components such as semiconductors, broader supply chain issues and strained freight capacity as a result of the COVID-19 pandemic and Russia’s war on Ukraine.
Adjusted for currency movements, the increase was 17%, of which vehicle sales increased by 19% and service sales by 11%.
For the calendar year 2022, Volvo, a rival of German brands such as Daimler Trucks, reported sales worth 473 billion Swedish crowns (SEK), nearly SEK 100 billion more than the comparing period, a year ago.
In terms of profitability for the fourth quarter, Volvo has reported a slightly smaller rise than expected in fourth-quarter core profit and has proposed an extra dividend but warned that its supply chain struggles are set to linger.
Volvo’s chief executive office and president Martin Lundstedt said while commenting on the results that the business continued to be affected by a volatile supply chain for components as well as its supplier base being under financial pressure from high energy prices and input costs.
He said, “Our strong finances mean that we can continue to provide a good return to our shareholders and at the same time invest in the transformation of our industries. The Board of Directors proposes an ordinary dividend of SEK 7.00 per share and an extra dividend of SEK 7.00 per share.”