Gothenburg: Volvo AB forecast today that heavy truck sales will drop 10% in Europe. Volvo, the world’s second-largest truck maker, reported a smaller-than-expected third-quarter profit as demand started to decline in Europe and Asia.
Olof Persson chief executive, Volvo AB, reiterated Volvo’s 2011 forecast of about 240,000 heavy-duty trucks for the total European truck market, but said the company has noted a slowdown in demand there.
Volvo profits increased by 36% in the third quarter, boosted by market share gains and higher financial incomes. Net profit rose to 3.8bn kronor ($579m) from 2.8bn in the third quarter of 2010. Sales for the period increased 15% to 73.3bn kronor from 64bn year.
• Earlier this month Scania AB, the Swedish truck maker controlled by Volkswagen AG, said it planned to lower production at European factories by as much as 15% from next month as demand for commercial vehicles drops.
