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Volvo Truck Accelerates Cost Cutting Effort
AB Volvo says a new efficiency drive affecting its construction equipment, truck sales and IT operations next year will cut full-year costs by 3.5 billion kronor (€381 million) in 2016.
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AB Volvo says a new efficiency drive affecting its construction equipment, truck sales and IT operations next year will cut full-year costs by 3.5 billion kronor (€381 million) in 2016.
The new reductions are in addition to 6.5 billion-kronor (€708 million) in structural costs the truckmaker expects to achieve for 2013-2015 under an earlier plan.
Volvo Trucks' third-quarter revenue of 67.2 billion kronor (€7.3 billion) was unchanged on an adjusted basis. But operating income rose 6% to 2.3 billion kronor (€250 million) in July-September. Operating cash flow swung to a positive 900,000 kronor from a negative 5.3 million kronor. Net orders rose 14% to 50,400 units.
Volvo predicts next year's market for heavy-duty commercial trucks will expand in the U.S. and India, shrink in Brazil and remain unchanged in Europe, China and Japan. The company expects demand in 2015 for construction equipment will rise in North America, remain unchanged in Europe and decline in China.
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