Mack Trucks (Financials)

Mack Trucks, a subsidiary of Volvo Group, released its financial results for the first quarter of 2024, showcasing a steady performance amidst market challenges.


Net Sales and Operating Margin:

- Mack Trucks reported net sales in its truck business that were consistent with the previous year, amounting to SEK 89.9 billion (89.6).

- The adjusted operating margin showed a slight increase, reaching 14.5% compared to 14.2% in the same period last year.

Market Performance:

- Mack Trucks experienced a slight decline in market share, settling at 5.3%.

- The net order intake for Mack Trucks in the first quarter of 2024 stood at 2,765 trucks, with 29 of those being electric trucks.

- The backlog of orders remained extended in North America, partly influenced by production slot shifts from 2023 to 2024 due to a strike in November.

Expansion Plans and Capacity Building:

- Volvo Group announced plans to construct a new heavy-duty truck manufacturing plant in Mexico, expected to be operational in 2026. This facility will support the growth strategies of both Volvo Trucks and Mack Trucks in the U.S., Canadian, Mexican, and Latin American markets.

Future Outlook:

- Mack Trucks remains committed to enhancing its presence in North America and expects the new manufacturing plant in Mexico to complement existing production sites in Virginia and Pennsylvania.

Construction Equipment Segment:

- In contrast to the truck business, Mack Trucks’ Construction Equipment segment experienced a decrease in net sales by 9%, amounting to SEK 22.9 billion.

- The adjusted operating margin for Construction Equipment declined to 16.1% from 18.3%, reflecting market challenges, particularly in Europe.

Despite market fluctuations and challenges, Mack Trucks continues to focus on maintaining steady performance and strategic expansion to support its long-term growth objectives.