Volvo Group profits soar as sales increase

Global manufacturer Volvo Group saw its sales surge in the second quarter of 2015, chalking the increase up to exchange-rate fluctuations in its earnings report published Friday.

Net sales soared by 17 percent to 84.8 billion SEK (9.81 billion U.S. dollars), a 17-percent increase on the same period last year, the company said.

"We are seeing a gradual recovery in Europe and unchanged demand in Asia, apart from the lower level of demand in China. In North America, there is a slowdown from high levels, while there has been a strong decline in the Brazilian market," Jan Gurander, acting president and CEO, said in a statement.

The majority of the group's sales were in North America and Western Europe, regions that saw year-on-year increases of 47 percent and 19 percent respectively.

Volvo Group reported operating income of 7.3 billion SEK (845 million U.S. dollars) for the quarter, more than double the figure it reported for the same period last year.

The company saw pre-tax profits of 6.4 billion SEK (740 million U.S. dollars), an 89-percent increase on last year's second quarter.

By late afternoon, stocks in the company had dropped by 4.86 percent on the Stockholm exchange.

Volvo Group, based in Gothenburg, Sweden, manufactures trucks, buses and construction equipment, as well as marine and industrial engines. The company announced in April it would be seeking a buyer for the consulting arm of its IT services division. (1 U.S. dollar = 8.64 SEK)