Volvo’s 4Q Profit Drops
Volvo AB’s fourth-quarter earnings fell, and the company predicted a “difficult” first quarter but said U.S. and European commercial-vehicle markets will likely recover later this year, Bloomberg News reported Wednesday.
Volvo’s fourth-quarter operating profit fell 84% on declining deliveries and spending on a reorganization that included job cuts, Bloomberg said.
Net income fell 82% to $126.5 million, as sales slipped 17% to $10.8 billion. Gothenburg, Sweden-based Volvo reports its earnings in Swedish kronor.
Volvo, which makes Volvo and Mack brand trucks in North America, estimated this year’s North American truck market will be close to the 250,000 deliveries estimated for 2012.
Worldwide fourth-quarter deliveries fell 15% to 58,626 trucks, while orders dropped 9.6% to 52,145 vehicles.
Volvo said it was “investing heavily” in new vehicles, including a range of cheaper trucks for emerging markets, Bloomberg reported.
Volvo said late last month that it would invest $900 million in a venture with China’s Dongfeng Motor Group Co.
Volvo, also the parent of Renault Trucks, said that brand will bring out new models in mid-2013, CEO Olof Persson said at a press conference Wednesday, Bloomberg reported.
