Volvo's AB profit below expectationsTuesday, 25 October 2011
Heavy vehicle manufacturer AB Volvo reports a profit before tax of Skr5.443 million for the third quarter of this year.
That compares with profit of Skr4.251 million in the corresponding periods of 2010.
Analysts had on average expected a profit of Skr5.702 million, according to Reuter’s consensus.
Turnover amounted to Skr73.321 million, compared to Skr63.969 million a year earlier.
Volvo cuts its forecast for North America and now expects a total market of 210,000 heavy trucks in the region during the year, against the previous forecast of 230,000 to 240,000.
Advertisement"But we expect an increase in demand next year," adds CEO Olof Persson in a statement.
Volvo believes that while the total market in Europe will amount to 240,000 heavy trucks this year, compared with a previous forecast of 230,000 to 240,000.
"The production, which rose slightly in August, is currently somewhat higher than the rate of order intake, which is why we are now preparing to reduce production rates in the European production system early next year," Persson wrote.
According to Volvo Group it is the global economy and the impact of the debt crisis in the euro zone, which makes things "unpredictable".
"In the short term, we follow the development of demand and supply of liquidity from the financial system closely. A impairment may change our forecasts for next year, "wrote Persson.
by Scancomark.se Team
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