Volvo to take Fourth Quarter Charge for Chinese Credit Losses
Dec. 30, 2014
Truck and equipment manufacturer Volvo said its operating profit in the fourth quarter would be negatively impacted by about $88 million because of expected credit losses in China.
“Following an extended period of declining demand, low machine utilization and lower raw materials prices, profitability for customers and dealers primarily in the Chinese mining industry has declined and their financial position has weakened,” Volvo said in a statement. “The risk for future credit losses has therefore increased and as a consequence Volvo Construction Equipment is provisioning 650 million Swedish crowns in the fourth quarter of 2014.”
Volvo is headquartered in Stockholm, Sweden.
