Volvo posts higher 4th quarter profit on brisk Europe sales

AP News
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Posted: Feb 05, 2016 6:34 AM

HELSINKI (AP) — Swedish truck maker AB Volvo has posted a fourth quarter net profit of 2.59 billion kronor ($310 million), compared with a 2.98 billion kronor loss last year, on the back of cost cuts and brisk sales in Europe.

The previous year's earnings were hurt by big provisions relating to an EU antitrust case and credit losses in China.

The Goteborg-based company said Friday sales in the last three months of 2015 rose 3 percent to 79.6 billion kronor.

Net orders fell to 49,088 vehicles from 61,222 the previous year. CEO Martin Lundstedt said the decrease was caused mainly by the key North American market, where demand was expected to remain sluggish. In Europe, demand for Volvo's trucks is forecast to remain brisk.