Volvo 4Q profits plunge, first quarter “difficult”
Volvo AB’s fourth-quarter earnings sank while the company predicted a “difficult” first-quarter this year Bloomberg reported Wednesday.
Volvo’s fourth-quarter operating profit slid 84 percent on declining deliveries and expenses tied to a reorganization that included job cuts.
Net income shrank 83 percent to $124 million as sales slipped 2.2 percent to about $48 billion.
Volvo, manufacturers of Volvo and Mack trucks in North America, estimated this year’s North American truck market will be close to the 250,000 deliveries estimated for 2012.
Worldwide fourth-quarter deliveries fell 15 percent to 58,626 trucks, while orders dropped 9.6 percent to 52,145 vehicles.
Volvo has already eliminated nearly 2,000 jobs in the quarter, with half of the cuts coming overseas. On a good note, Volvo production stoppages originally set for March and April have been dropped, Chief Executive Officer Olof Persson told Bloomberg.