However, the decline in the number of orders foresees a lower turnover this year, which analysts attribute to the downturn in the European road transport market.

In the fourth quarter of last year, the Volvo Group generated sales of SEK 148 billion, up 10 percent on a year earlier. Total annual revenue was 552 billion kronor (49 billion euros), 17 percent higher than in 2022. In Europe, fourth quarter revenue was 66 billion kronor, up 23 percent year-on-year, and annual revenue was 24 percent higher at 236 billion kronor.    The group's operating profit for the fourth quarter was SEK 16.8 billion, up from SEK 11.5 billion a year earlier, and the annual operating profit was SEK 66.7 billion, up from SEK 45.7 billion.

Adjusted for one-off items, operating profit for the fourth quarter was SEK 18.3 billion, up from SEK 12.1 billion, which corresponds to a profitability on revenues of 12.4 percent. On a yearly basis, non-recurring adjusted operating profit rose to SEK 77.6 billion from SEK 50.4 billion and profitability improved to 14.0 percent from 10.7 percent.    Profit for the quarter amounted to SEK 12.0 billion, up from SEK 6.6 billion a year earlier, and annual profit was SEK 49.9 billion, up from SEK 32.9 billion a year earlier. Earnings per share rose to SEK 5.9 in the fourth quarter from SEK 3.2 and annual earnings per share rose to SEK 24.5 from SEK 16.1. The board of directors will propose to the shareholders' meeting the payment of an ordinary dividend of SEK 7.50 per share and a special dividend of SEK 10.50 per share. The total dividend will be four kronor higher than a year earlier.

Volvo's orders fell in the fourth quarter and for the full year 2023. In the fourth quarter, orders received fell by 9 per cent to 49,000 vehicles from 54,000 a year earlier. For the year, Volvo received 204,000 orders, down 6 percent from 217,000 in 2022.    Volvo delivered 65 thousand trucks in the fourth quarter, up 4 percent year-on-year. Annual sales rose by 6 percent to 232 thousand.    In Europe, deliveries increased significantly, up 29 percent to 49.9 thousand in the fourth quarter and 28 percent for the full year to 175 thousand.

Volvo has revised downwards its forecast for the overall European truck market this year. It expects to place 280,000 trucks in Europe this year, down from 290,000 in its previous forecast. For the North American market, Volvo has maintained its estimate of 290,000 truck registrations this year. However, Volvo expects the Chinese market to be 800,000 medium and heavy trucks, compared to 700,000 in its previous forecast.    Volvo's share price has risen by about 20 percent in the past 12 months, while the Stockholm Stock Exchange index has risen by 6 percent.

Volvo CEO Martin Lundstedt said demand was "normalising" in several markets and segments. Commenting on the past year, he said "we have successfully mitigated cost inflation, resolved supply chain disruptions and reduced inventories".