Volvo profits down as truck sales fall in North America

AP News
|
Posted: Apr 22, 2016 5:35 AM

STOCKHOLM (AP) — Swedish truck maker Volvo AB says its first-quarter profits dipped by 11 percent as demand dropped in North America.

Volvo posted a net profit of 3.8 billion kronor ($468 million), down from 4.2 billion kronor in the same quarter last year.

The company said Friday that its sales fell 4 percent to 71.7 billion kronor, "primarily an effect of the slowdown in the north American truck market."

Volvo says demand for heavy-duty trucks was down 7 percent in North America, but rose by 23 percent in Europe.

The results beat some analysts' expectations and Volvo shares rose 5 percent to 98.90 kronor ($12.18) after the announcement.

The company, which has 99,000 employees, sells trucks under the Volvo, Renault, Mack and UD brands. It also makes buses, engines and construction equipment.