Volvo Group last week reported that third quarter net sales decreased by 31 percent to SEK 48.5 billion (US $7.1 billion) from SEK 69.8 billion (US $10.2 billion) a year ago. Adjusted for currency effects, net sales decreased by 39 percent.
The third-quarter operating loss was significantly reduced compared to the second quarter as a result of cost-cutting measures. The operating loss amounted to SEK 3.3 billion (US $478.8 million) compared to an operating loss of SEK 6.9 billion (US $1.0 billion) in the second quarter of 2009. In the third quarter of 2008 the operating income was SEK 3.2 billion (US $462.9).
In the third quarter, basic and diluted earnings per share amounted to a negative SEK 1.44 (negative US $0.20) compared with positive SEK 0.98 a year ago (US $0.14).
“Although we see that the markets have stabilized, we are not relying on our profitability being boosted by a substantial recovery in sales of new products,” said Leif Johansson, president and CEO. “We remain far below the long-term trend line for sales of new trucks and machines, and we will therefore continue to adjust our costs to current demand. We will also continue our work to improve efficiency throughout the Group.”
Although the third quarter remained, as expected, challenging in terms of profitability, there are some positive signs indicating that the decline in demand has bottomed out and that we are now beginning a gradual recovery, Volvo said. These signs are the most obvious in the Group’s second-largest region in terms of sales, Asia, where the economic growth is also reflected in demand for the Group’s products.
Headquartered in Göteborg, Sweden, the Volvo Group is one of the world’s leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 19 countries and sells its products in more than 180 markets.
