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Volvo Reports 1Q Loss; Sees Lower Demand
Volvo AB Friday reported its second consecutive quarterly loss and predicted a decline in European and North American truck markets, Bloomberg reported.
Its first-quarter loss was about $515 million, compared with net income of about $520 million last year, Volvo said.
The company forecast a drop in the North American truck market of as much as 40%, up from a February forecast of an approximately 11% decline, Bloomberg reported.
“Demand weakened sharply in all markets during the first quarter,” Chief Executive Officer Leif Johansson said in a statement. “We will further reduce production rates in most plants during the second quarter.”
Volvo’s truck division, the largest of its five units, posted a loss of about $300 million, while orders plunged 65% to 20,183 vehicles, Bloomberg reported. Its construction-equipment unit’s orders fell 46%.
Sweden-based Volvo reports its earnings in Swedish kronor and is the parent company of U.S.-based Mack Trucks and Volvo Trucks North America.
The company said earlier this week it would cut 1,500 jobs in Sweden, including more than 650 in its trucking division.