STOCKHOLM, April 17 (Reuters) - Swedish truck maker AB

Volvo reported on Wednesday a smaller drop than

expected in first-quarter adjusted operating profit and said

demand in the quarter had continued to normalise.

Adjusted operating profit was 18.2 billion crowns ($1.66

billion) against a year-earlier 18.6 billion and a mean forecast

in an LSEG poll of analysts of 16.9 billion.

Volvo reiterated its forecasts for both the total European

and the total North American heavy truck markets, for 280,000

and 290,000 new units this year, respectively.

"In Europe, order backlogs and lead times have

normalized. Through the quarter we gradually reduced production

capacity in Europe and anticipate to be in balance during Q2,"

CEO Martin Lundstedt said in a statement.

"In North America, Mack Trucksʼ order backlogs are still

extended, partly due to the strike in November, which pushed

already sold production slots from 2023 into 2024," he said,

adding that demand had in the quarter continued to normalise at

good levels across many markets.