Volvo’s Third-Quarter Income Drops on Lower Demand
Volvo AB said Friday its third-quarter earnings fell on lower demand for heavy trucks in both Europe and North America, Bloomberg reported.
Net income fell 37% to the equivalent of $253 million, or 13 cents a share, from $398 million, or 20 cents, a year earlier, Volvo said.
Sales rose 1.8% to about $9 billion, the company said. Gothenburg, Sweden-based Volvo reports its earnings in Swedish krona.
European heavy-duty truck sales fell 4.8% to 28,947 in September as the credit crisis and concern about a recession deterred buyers, Bloomberg reported, citing the European Automobile Manufacturers Association.
Volvo said the European market for heavy trucks may be flat this year, while North America will contract by 10%, down from a previous forecast of 10% growth in Europe and North America unchanged, Bloomberg reported.
Volvo’s construction equipment division, its second-largest after trucks, saw a 44% decline in its third-quarter orders, Bloomberg said.
Volvo AB is the parent company of U.S.-based Mack Trucks and Volvo Trucks North America.
