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Truckmaker Volvo breezes past third-quarter earnings forecasts, order intake jumps

FILE PHOTO: An employee at a Volvo car dealer, wearing a protective mask is seen in the showroom, amid the coronavirus disease (COVID-19) outbreak in Brussels, Belgium May 28, 2020. REUTERS/Yves Herman

STOCKHOLM (Reuters) - Swedish trunk-maker AB Volvo VOLVb.ST on Friday reported third-quarter core earnings well above markets forecasts and a big jump in order intake as a recovery from a deep COVID-19-induced slump earlier in the year continued to gain pace.

Adjusted operating profit at the maker of trucks, construction equipment, buses and engines fell to 7.22 billion crowns ($813.2 million) from 10.89 billion a year-ago, well above analysts’ mean forecasts of 5.82 billion, according to Refinitiv estimates.

Volvo said net order intake in the quarter amounted to 57,530 trucks, up 61% from a year earlier.

“In the last two quarters, our organization and business partners have shown great volume flexibility by first handling a dramatic volume decline and then a steep recovery with maintained good productivity,” CEO Martin Lundstedt said in a statement.

The news from Volvo, which had initially scheduled its earnings report for Oct. 20, come as rival Daimler AG DIAGn.DE reported forecast-beating results late on Thursday.

Reporting by Anna Ringstrom and Johannes Hellstrom, editing by Gwladys Fouche