Volvo’s Profits, Revenue Rise on Higher Sales
olvo AB said its third quarter profit rose to about $540 million or $1.32 a share, from about $399 million, or 99 cents in 2005, Bloomberg reported Tuesday.
Volvo, which reports its earnings in Swedish kronor, said sales in the third quarter in-creased to about $7.8 billion.
rucking companies are buying new trucks before European Union rules begin Oct. 1 and new diesel emissions standards take effect in the United States next year, Bloomberg said.
Leif Johansson, chief executive officer of Volvo, also forecast that 2006 North American truck sales would rise to 340,000 vehicles from 320,000 last year, Bloomberg said.
The unit’s worldwide order bookings, a barometer for future sales, fell 22% to 37,850 vehicles, led by a 58% decline in North America, Bloomberg reported.
Johansson said the truck maker is trimming its workforce in preparation for an antici-pated 40% drop in North American sales when the Environmental Protection Agency’s stringent 2007 emission standards come into effect Jan. 1, Bloomberg said.
