Volvo Group in the red for first quarter, over weak demand

DPA Stockholm | Updated on April 25, 2013 Published on April 25, 2013

Swedish heavy-vehicle maker Volvo on Thursday reported a first-quarter net loss of 248 million kronor ($ 37 million), citing substantially weaker demand.

This was down from a net profit of 4.1 billion kronor in the corresponding business period a year earlier for the Volvo Group, which excludes the brand’s China-owned car division.

Net sales in the quarter declined 25 per cent year-on-year to 58.3 billion kronor.

“The sales volumes were the lowest since the financial crisis and were on the level of the first quarter of 2009,” Chief Executive Olof Persson said.

Order intake, however, improved during the quarter including in Europe where new emission rules were to be introduced next year, Persson added.

Volvo said it delivered 38,416 trucks in the first quarter, down 23 per cent year-on-year. Orders increased 11 per cent in the quarter, to 61,045 trucks.

Volvo said it maintained its outlook for the heavy truck market in Europe and North America.

In South America, especially Brazil, deliveries and orders both rose in the quarter, while orders also increased in Japan.

The Volvo Group sells trucks and heavy vehicles, buses and construction machinery, and includes the division Volvo Penta. The Volvo car division is owned by Chinese group Zhejiang Geely Holding.

Volvo said it delivered 1,825 buses in the quarter, worldwide down 29 per cent compared with the same business period 2012.

Published on April 25, 2013
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