Truck maker Volvo sees earnings rise but new orders fall

AP News
Posted: Oct 23, 2015 9:45 AM

STOCKHOLM (AP) — Swedish truck maker AB Volvo says a weaker currency boosted its third quarter earnings but noted that intake for new truck orders fell 15 percent, mainly due to a slowdown in North and South America.

The Gothenburg-based company said Friday net profit for July-September more than doubled to 3.1 billion kronor ($365 million), from 1.5 billion in the same period last year.

Volvo, which also makes buses, engines and construction equipment, said sales grew 9 percent to 73.3 billion kronor. But when adjusting for currency movements, revenue growth was one percent.

Acting CEO Jan Gurander said the company sees "continued improvement in Europe" in the truck market, declining demand in North America and a weak market in Brazil. Demand in Asia, except for China, is set to remain "relatively stable."