Sweden's AB Volvo reported a bigger-than-expected rise in quarterly core earnings on Friday as stronger demand for heavy trucks more than offset costs stemming from strains on its supply chain, sending its shares to a record high.
Sweden's biggest manufacturer by sales also raised its outlook for truck markets on both sides of the North Atlantic this year and forecast a further strong recovery in sales of commercial vehicles in North America in 2018.
"These are blow-out numbers," said analyst Hampus Engellau at Handelsbanken Capital Markets, which rates the stock "buy".
Shares in Volvo rose 7.0 percent by 0800 GMT, leaving the stock up 56 percent so far this year.
Volvo and rivals in the truck industry such as Germany's Daimler and Volkswagen have hit a sweet spot this year, with rising or already robust demand in all major commercial vehicles markets.
The broad upturn in demand was also in evidence in Daimler's quarterly results, also released on Friday, with a double-digit rise in deliveries and a 32 percent jump in earnings at its trucks division.
Yet the buoyant demand has also come at a cost, with pressured supply chains leading components maker SAF-Holland to scale back its 2017 margin outlook this month, while Volvo's profitability was dented in the second quarter.