Volvo’s Quarterly Profit Drops; Truck Orders Improve
Volvo AB’s first-quarter earnings plunged as truck sales fell, but the company reported its first boost in truck orders in six quarters, it said Thursday.
First-quarter truck orders rose 11% from a year earlier to 61,045 trucks, which was also a 30% gain over the fourth quarter.
Its North American truck sales fell 32% and worldwide truck sales fell 23% in the quarter, the company said in a statement. Volvo makes Volvo and Mack brand trucks in North America.
The North American retail market for heavy-duty trucks fell by 14% in the quarter to just over 50,000 vehicles, compared to about 58,000 a year ago.
Volvo said its North American market share slipped in the quarter, “reflecting additional down weeks that were implemented in production.”
It said the “construction segment is showing signs of recovery after years of weak performance, but the primary market driver continues to be replacement demand in the highway segment, which is tempered by lingering caution regarding the economy.”
First-quarter earnings before interest and taxes fell 92% to about $73 million, while revenue fell 25% to about $8.9 billion. Gothenburg, Sweden-based Volvo reports its earnings in Swedish kronor.
