AB Volvo reported first-quarter net income equivalent to $205.3 million, up 7.3 percent from a year earlier when a one-time gain of $393 million is stripped out of the 1997 results.
Group revenue rose 16.7 percent, to the equivalent of $6.35 billion, as car sales rose 11 percent and trucks gained 31 percent.
But profit margins fell, prompting CEO Leif Johansson to order intensified cost cutting. The return on group sales slipped to 4 percent, from 4.5 percent, while the operating margin of the cornerstone Volvo Car Corp. fell to 3.6 percent from 4.6 percent.
The truck group's return improved to 4.4 percent from 2.8 percent, however.
Operating income for Volvo Car slipped 14.3 percent to about $119 million, even though unit sales rose 8 percent to 102,310 and revenue increased 11 percent.