Swedish commercial vehicle maker Volvo Group today reported increased profits for the second quarter thanks to a strong growth in demand coupled with cost-cutting.

The truck market is recovering from its worst slump in decades. Volvo said that it was expecting the European market to grow by 10% this year and that North America would bounce back by 20-30%.

The world's second-largest truck maker made a profit before tax of 4.5bn Swedish Kronor (£400m), well ahead of analysts' expectations of SKr3.4bn. Truck sales climbed 24%, year-on-year, to SKr41.6bn.

Market leader Daimler also had a strong second quarter at its Mercedes-Benz trucks division.

Volvo Group chief executive Leif Johansson said sales had been particularly strong in Asia and South America, although from a historical perspective overall sales were still low.

"In terms of market conditions, we see an increase in activities among our North American customers and that order intake is on the way up," he added.

"We anticipate that the demand for new trucks in North America will continue to rise during the second half of this year and that the gradual increase in Europe will also continue."

Volvo's truck order intake in Europe soared 112%, in North America it was up 105% and in Asia 70%.