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Volvo’s 1Q Profit Declines
Truck maker Volvo AB’s first-quarter profit dipped 5.8% as North American sales declined, but the company’s European sales increased, Bloomberg reported Friday.
First-quarter net income fell to about $550 million or 27 cents a share, from $580 million or 29 cents last year, Bloomberg said.
Revenue fell 3% to about $8.9 billion. The Gothenberg, Sweden, company reports its financial results in Swedish kronor.
North American truck fell 49% to 9,024 vehicles, while orders, an indicator of future sales, plummeted 80% to 5,273 vehicles, Bloomberg said.
Volvo is the parent of Volvo Trucks North America and Mack Trucks.
The company helped offset the U.S. decline with increased sales in the booming eastern European and Russian markets, as European revenue rose 11% to $3.7 billion, Bloomberg reported.
Eastern European sales more than doubled to 3,618 vehicles Volvo forecast the European heavy-truck market growth this year would grow to 330,000 vehicles from 300,000 last year, Bloomberg said.
