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Fourth-Quarter Earnings Jump 86% for Volvo Truck
Cost cutting and a 10% jump in truck orders helped AB Volvo hike its adjusted operating profit in October-December 24% to 5.7 billion kronor ($647 million).
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Cost cutting and a 10% jump in truck orders helped AB Volvo hike its adjusted operating profit in October-December 24% to 5.7 billion kronor ($647 million).
Revenue for the period grew 4% to 83 billion kronor ($9.4 billion), and net profit soared 86% to 4.8 billion kronor ($553 million). Volvo Group says strong sales in Europe offset a continued slide in demand across North America.
Full-year sales in 2016 for the Swedish maker of heavy commercial trucks, buses and construction equipment fell 3% to 301.9 billion kronor ($33.9 billion) as new orders declined 5% to 188,900 vehicles.
Volvo’s adjusted operating income last year advanced 4% to 21.1 billion kronor ($2.4 billion). But net profit dropped 12% to 13.2 billion kronor ($1.5 billion).
Europe’s overall truck market this year will be flat at 300,000 units, the company predicts. It anticipates a modest decline in North America to 215,000 units.
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