Volvo AB, a Swedish vehicle manufacturer, saw a 23 percent rise in its first quarter net profits, the company announced on Tuesday.

Volvo said its net profit increased to 3.99 billion kronor (522.9 million U.S. dollars) in the first quarter from 3.24 billion kronor (424.6 million dollars) in the same period of 2005.

The company reported that its operating profit was also up to 5.43 billion kronor (about 721 million dollars) from 4.53 billion Kronor (about 601million dollars) in the same period last year.

Net sales grew 15 percent to 60.2 billion Kronor (7.99 billion dollars), from 52.3 billion kronor (6.94 billion dollars) in the first quarter of 2005.

Volvo CEO Leif Johansson said in a statement that there was a stronger demand for trucks in both Europe and North America than expected.

He said in Europe, "customers are ordering trucks prior to new emission standards that will be introduced on Oct. 1, 2006" and order bookings in North America were also "extremely high" during the first quarter.

Volvo, which sold its car division to U.S.-based Ford Motor Co.in 1999, also makes buses, construction equipment and engines.

Source: Xinhua