kscarbel Posted February 6, 2013 Share Posted February 6, 2013 The Financial Times / February 6, 2013Volvo profits hit as truck orders slumpVolvo Group warned that the first quarter of this year would be difficult after it reported a drop in operating profits of 84% in the last 3 months of 2012 as demand for trucks and construction equipment slumped.CEO Olof Persson said he expected economic growth globally to “gain momentum” during 2013 but that profitability in the first quarter would be weighed down by low production and high spending on new products and research and development.“The first quarter of 2013 will also be difficult as a result of the low order intake in many markets during the fourth quarter of 2012,” he said.Volvo has struggled to maintain profitability in the cyclical truck and construction machinery sectors.Volvo Group operating profit in the fourth quarter fell from US$1.09 billion (SKr6.96bn) a year earlier to US$180 million (SKr1.12bn) while sales dropped 17% to US$11.3 billion (SKr72bn).Demand in Volvo’s truck division was lower worldwide, with deliveries down 17% in South America and Asia, and 23% in North America. Europe fell 10%.Volvo said forecasts for this year were difficult to make but stuck to its earlier estimate of unchanged sales in Europe and North America. Order intake in the quarter fell 10% but that was better than analysts had predicted, and also an improvement on the previous three months, helped by stronger demand from Brazil.Volvo has been cutting production and stock levels aggressively to avoid being caught as it was in the 2008-09 financial crisis when net orders went negative for several months. Quote Link to comment Share on other sites More sharing options...
james j neiweem Posted February 7, 2013 Share Posted February 7, 2013 Maybe some American company can buy volvo truck and Mack and then dump volvo and bring back A-Car. Wishfull thinking of course. Quote Link to comment Share on other sites More sharing options...
mackcl96 Posted February 11, 2013 Share Posted February 11, 2013 Autocar is not what it use to be,,,,,,,,,Will this be Mack in 20 yearsYes this is a Autocarhttp://www.equipmentready.com/d/Tractor-AUTOCAR-XSPOTTER+ACTT42-Truck-5466808 Quote Thanks for hearing me out.You can have the soap box now---------JIM Link to comment Share on other sites More sharing options...
2stacksuperdog Posted February 11, 2013 Share Posted February 11, 2013 Nothing alike...Maybe bring back Brockway too? Quote Matt Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.