Swedish truck maker AB Volvo reported a larger than expected decrease in third-quarter adjusted operating profit, citing continued normalization of demand in most of its markets. Adjusted operating profit for the quarter was 14.1 billion crowns, down from 19.3 billion in the same period last year and below the average analyst forecast of 15.6 billion. This decline was attributed to a 12% drop in sales.
Truck manufacturers have been facing a slowdown in demand this year as markets return to pre-pandemic levels. Volvo has predicted that the European and North American heavy truck markets will see a total of 290,000 and 300,000 vehicles sold next year, respectively.
Additionally, Volvo revised its forecast for this year’s European heavy truck market to 300,000 new vehicles, up from the 290,000 previously estimated in July. The company maintained its projection of 290,000 vehicles for the North American heavy truck market for the current year.
($1 = 10.5328 Swedish crowns)