MACUNGIE, Pa. – Mack Trucks’ orders continued to grow in the first quarter of 2021, both sequentially and compared to the first quarter of 2020. The same held true for the worldwide truck orders for Mack’s parent company, Volvo Group of Sweden.
These positive results contributed a 3% net sales increase and a historically high adjusted operating margin of 12.6% for Volvo Group.
However, the worldwide semiconductor shortage could pose problems in the future.
The company reported that in the first quarter the freight market continued to be strong with high volumes of both industrial goods and consumer goods in the Volvo Group’s main markets. In combination with a general shortage of transport capacity, this has meant that freight rates have increased and customer profitability improved, driving demand for both new and used vehicles.
Volvo Group President and CEO, Martin Lundstedt, commented in a statement: “Our inventories of both new and used trucks are globally low and we have full focus on trying to satisfy the demand from our customers.
“The global shortage of semiconductors had a limited impact on our production during the first quarter. As we announced at the end of March, we expect to take stop days corresponding to two to four weeks in global truck manufacturing, depending on production site, in the second quarter.”
Lundstedt continued: “The global supply chain for semiconductors as well as for other components remains very unstable and the uncertainty about the development is high. We can therefore not rule out further disruptions in both the truck business and other parts of the Group.”
Mack Operating Results
Mack showed a robust order intake of 13,588 units in the first quarter, up from 7,839 units in the 2020 fourth quarter and a meager 3,744 units in the first quarter of 2020 when the pandemic first slammed businesses worldwide.
Volvo Group’s worldwide net order intake, which includes Mack’s order intake, grew 123% in the first quarter of 2021 compared to 2020, aided by a 369% increase in North America from 4,732 units in 2020 to 22,215 units in first quarter 2021.
Mack truck deliveries increased 17% in the first quarter of 2021 compared to 2020, up from 5,501 units to 6,456 units in 2021. Volvo Groups first quarter 2021 deliveries also increased by 17% to 52,444 units from 44,765 units in 2020.
Mack Trucks market share declined to 6.6% in the quarter from 6.9% in the fourth quarter of 2020 but the market share of Volvo Groups other heavy-duty trucks in North America increased to 10.3% in the 2021 first quarter from 9.1% in the previous quarter.
Across all Volvo Groups’ lines of business, net sales increased 3% in the first quarter compared to first quarter 2020. Operating income increased 63.6% in the first quarter compared to the same quarter the previous year while net income increased 89.0% in the same period.
Mack Truck is one of North America’s largest manufacturers of heavy-duty Class 8 trucks, engines and transmissions. Founded in 1900, Mack Trucks are sold and serviced in more than 45 countries worldwide. Mack is part of the Volvo Group, headquartered in Goteborg, Sweden, one of the world’s leading manufacturers of trucks, buses, construction equipment, marine and industrial engines.