GOTHENBURG / LONDON (IT BOLTWISE) – Swedish truck maker Volvo is facing weak demand in North America, which is having a negative impact on its business figures. In the third quarter, sales fell by five percent, while the bottom line profit fell significantly. The uncertainties in US customs policy contribute to customer reluctance.
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Swedish truck maker Volvo is facing challenges as demand weakens in North America. In the third quarter, the company recorded a five percent decline in sales compared to the same period last year, amounting to 110.7 billion Swedish crowns. However, without taking exchange rate effects into account, sales increased by one percent. These figures highlight the difficult market conditions Volvo is currently facing.
Operating profit, adjusted for special items, fell from 14.1 billion to 11.7 billion crowns, which corresponds to a margin reduction of 1.4 percentage points to 10.6 percent. The bottom line is that profits fell from 10.1 to 7.6 billion crowns. This development shows that the economic conditions and the uncertainties on the North American market have a significant impact on the company’s profitability.
In the third quarter, Volvo delivered 44,631 trucks, a decrease of four percent compared to the previous year. The declines were particularly significant in North and South America, while more vehicles were delivered in other regions. Order intake fell by 14 percent to a total of 37,134 trucks. Interestingly, orders in North America increased by ten percent, while in Europe they fell by ten percent. The decline in orders was even more pronounced in South America and Asia.
Volvo management expects that the uncertainties caused by the US government’s tariff policy will continue to weigh on demand in North America in the coming year. Heavy-duty truck registrations in North America are expected to decline by 15,000 units to 250,000 next year. This forecast shows that Volvo must prepare for a persistently difficult market situation influenced by political and economic factors.
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