Munich — Volvo’s shares jumped to a 10-year high after cost cuts and higher construction equipment sales propelled a 58% surge in the truckmaker’s first-quarter earnings. The stock rose as much as 7.6% to 144 kronor, the highest intraday price since July 24 2007, and was up 6% at 9.39am in Stockholm. Adjusted operating profit climbed to 7.03-billion kronor ($798m). Orders for commercial vehicles and machinery for construction sites and mining also gained, Volvo said on Tuesday in a statement, boding well for future revenue. "This was an extremely strong quarter, with the benefits of the restructuring over the past couple of years coming through," said Jose Asumendi, a London-based analyst with JPMorgan Chase. "Those orders are going to translate into sales in the coming quarters."
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