World number two truckmaker Volvo said production problems and a shortage of skilled staff thwarted its efforts to react quickly enough to a strong rise in demand, hitting its quarterly earnings. The highly cyclical heavy-duty trucks market has picked up rapidly, leading Volvo to raise its forecast for demand on both sides of the Atlantic, but also leaving truckmakers with the task of quickly raising production from rock-bottom levels.
Gothenburg-based Volvo, which also manufactures buses, construction equipment and engines, said on Friday that temporary production problems at sub-contractors and in its own operations had cropped up as output was rapidly increased. Volvo posted a smaller-than-expected rise in fourth-quarter earnings, with high raw material costs and a strong currency also denting results, a familiar tune after reports from rivals Scania and Paccar this week.
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