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Truck maker Volvo posts Q3 loss as sales fall
Swedish truck maker AB Volvo on Friday reported a third-quarter net loss of 2.9 billion kronor ($423 million), due to a steep drop in sales, and said demand was still "far below" normal levels.
It was the fourth consecutive quarterly loss for the company and compares with a previous profit of almost 2 billion in the same three months a year ago.
Revenue in the period plunged more than 30 percent to 48.5 billion kronor from 69.8 billion kronor in the third quarter in 2008.
Volvo CEO Leif Johansson said that although markets seem to have stabilized, his company "is not relying on our profitability being boosted by a substantial recovery in sales of new products," saying it is still "far below" the long-term trend for sales of new trucks and machines. The company will therefore continue to keep sharp control of costs, he said.
Volvo, headquartered in Goteborg, also makes buses, engines and construction equipment. It sold its car division to U.S.-based Ford Motor Co. in 1999, which now has announced that the car unit is for sale.
It was the fourth consecutive quarterly loss for the company and compares with a previous profit of almost 2 billion in the same three months a year ago.
Revenue in the period plunged more than 30 percent to 48.5 billion kronor from 69.8 billion kronor in the third quarter in 2008.
Volvo CEO Leif Johansson said that although markets seem to have stabilized, his company "is not relying on our profitability being boosted by a substantial recovery in sales of new products," saying it is still "far below" the long-term trend for sales of new trucks and machines. The company will therefore continue to keep sharp control of costs, he said.
Volvo, headquartered in Goteborg, also makes buses, engines and construction equipment. It sold its car division to U.S.-based Ford Motor Co. in 1999, which now has announced that the car unit is for sale.
3:25 AM
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