STOCKHOLM (AP) -- Swedish truck maker AB Volvo said Tuesday its profits surged by 36 percent in the third quarter, boosted by market share gains and higher financial incomes.
Net profit rose to 3.8 billion kronor ($579 million) from 2.8 billion in the third quarter of 2010. Sales for the period increased 15 percent to 73.3 billion kronor from 64 billion year.
Volvo said it increased its truck market share in Europe to 27.1 percent, from 23.8 percent last year. It also gained market share in the U.S., to 19.1 percent from 16.1 percent, and in Brazil to 16.7 percent from 14.4 percent.
Results were also boosted by higher operating income from Volvo's industrial operations and other financial incomes.
However, changes in currency exchange rates weighed on operating income by 1.8 billion kronor and put the total result below analysts' expectations.
Shares in the company fell by 0.7 percent to 78.7 kronor ($12) in early trading on the Stockholm stock exchange.
Volvo, which sold its car division in 1999, is one of the world's biggest truck makers, with brands including Volvo, Mack, Renault and UD trucks. It also makes buses, engines and construction equipment.
"During the third quarter of 2011, demand remained favorable in most of the Volvo Group's markets," CEO Olof Persson said.
He added that it is difficult to assess the development of the world economy looking ahead, but said Volvo is prepared to make quick changes to its work force should there be a drop in demand, since 17 percent of its staff are on short-term contracts.
Persson reiterated Volvo's 2011 forecast of about 240,000 heavy-duty trucks for the total European truck market, but said the company has noted a slowdown in demand there. He said Volvo is preparing to reduce manufacturing in Europe next year, when it expects sales to decrease by 10 percent.
For North America, the company cut its total market forecast for this year to about 210,000 heavy-duty trucks, from 230,000-240,000 previously, but said it anticipates the market to expand by around 20 percent in 2012.
It also said signals of higher demand are becoming increasingly more visible in Japan as reconstruction work begins following the earthquake and the tsunami earlier this year. It said it expects the total market there to increase by about 20 percent in 2012.
Volvo also said it expects a total market of about 120,000 heavy-duty trucks in Brazil this year and a decline of about 10 percent in 2012.