(Reuters) – AB Volvo (OTC:VLVLY) expects the European and North American heavy trucks markets to slow next year, it said on Wednesday as it reported a bigger than expected jump in quarterly profit.

The Swedish group predicted the European and North American heavy truck markets would total 290,000 vehicles each in 2024.

It reiterated a 2023 outlook from July which sees the North America market at 330,000 trucks and raised its forecast for Europe to 340,000 from 330,000.

“We expect our major truck markets to continue to be strong throughout this year as we continue to deliver from our large order books to customers, but (we) forecast lower market levels for next year,” CEO Martin Lundstedt said in a statement.

Gothenburg-based Volvo, which also makes construction equipment and engines, said order intake for its trucks fell 27% in the third quarter.

However, its third-quarter operating profit excluding costs related to the group’s exit from Russia jumped 61% from a year earlier to 19.1 billion crowns ($1.75 billion).

That beat the 16.4 billion forecast by analysts polled by LSEG.

Its adjusted operating profit margin widened to 14.4% from 10.3% as price hikes made up for higher costs.

“We have successfully mitigated cost inflation with price management and continued to handle disturbances in the supply chain,” Lundstedt said.

Handelsbanken analyst Hampus Engellau said the market outlook was in line with market expectations.

Volvo’s shares were up 1% in early trade.