By Scott Kanowsky
Investing.com -- Shares in Volvo AB (ST: VOLVb ) surged to near the top of the pan-European STOXX 600 on Wednesday after the truckmaker posted better-than-expected profit and net sales in the first quarter.
In a preliminary update, the Swedish firm reported a 45% surge in adjusted operating profit to SEK18.4 billion (SEK1 = $0.0962) for the January to March quarter, far above the SEK12.83B Bloomberg consensus estimate. The uptick in three-month income translated to an adjusted operating margin of 14.0%, up from the prior mark of 12.0%.
Net sales of SEK131.4B also topped projections of SEK118.44B.
In January, chief executive officer Martin Lundstedt flagged that costs related to "energy, material and supply chain disruptions continue to be high," adding that uncertainty remains around the broader economic environment.
Volvo did not provide further details about its current trading conditions. Analysts at Morgan Stanley suggested that the uptick in profit margin in particular may stem from a "material improvement" in the supply of component parts.
The company is set to publish its full quarterly results on April 20.
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