Swedish truck maker Volvo's second-quarter profit rose, as service sales and reduced development spending helped offset the impact of higher tariffs and inflationary pressures.

The company said in a statement on Friday that its adjusted operating profit rose to 14.8 billion Swedish kronor ($1.34 billion), beating analysts' expectations of 14.3 billion kronor.

Volvo Cars' profit falls less than expected

Bloomberg News quoted CEO Martin Lundstedt as saying in a statement that the world's second-largest truck maker improved despite higher shipping and raw material costs and US tariffs.

Volvo had warned last month during an investor meeting that rising shipping and raw material costs, partly due to disruptions in the Middle East, would weigh on profit margins in the second quarter.

The global truck industry is experiencing cautious optimism as North American markets see increased demand after several years of weak sales.

Investors are watching whether major companies such as Volvo, Traton, and Daimler Truck can turn higher sales into increased returns.

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