Sweden based manufacturer buses and construction equipment AB Volvo Group (STO: VOLV-B) announced its results for the third quarter of the year in which it beat what analysts were expecting for the company despite the global chip shortage which has greatly affected the automotive industry across the world.
In the third quarter, the company generated an adjusted operating profit of $1.09 billion up from the $837 million the company recorded in a similar quarter last year. This was also higher than the $1.02 billion analysts were expecting for the company.
The company said the shortage of chips and other components resulted to production disruptions and increased production costs.
Volvo further cautioned that it expects more disruptions and stoppages both in production of trucks and in other production units of the company.
U.S based investment bank and financial service provider JP Morgan & Chase Co. (JPM) says that despite hard time and operational disruptions Volvo still managed to produce a solid set of results.
“Despite limited visibility in the supply chain and semi-conductor shortages still impacting the industry in 2H21, we expect consensus expectations to move slightly higher,” said JP Morgan.