STOCKHOLM (Reuters) -Swedish truck maker AB Volvo (OTC:) reported on Friday a much bigger drop than anticipated in its third-quarter adjusted working revenue and mentioned it sees roughly unchanged demand subsequent 12 months as clients proceed to be cautious.
Adjusted working revenue was 14.1 billion crowns ($1.34 billion) in opposition to a year-earlier 19.3 billion and a imply forecast in an LSEG ballot of analysts of 15.6 billion, as gross sales dropped 12%.
Volvo mentioned the amount drop harm its income together with an elevated spend on analysis & growth and a damaging value combine.
Truck makers this 12 months have skilled an anticipated slowdown in demand as markets normalised following a post-pandemic spike.
Volvo predicted subsequent 12 months’s European and North American heavy truck markets would complete 290,000 and 300,000 autos, respectively.
It mentioned it now sees this 12 months’s European heavy truck market at 300,000 new autos, up from 290,000 seen in July. It additionally retained its forecast for this 12 months’s North American heavy truck market at 290,000 autos.
Its third-quarter order consumption for its heavy-duty vans declined 7% versus a 12 months in the past
“Which reflects cautiousness among some customers amid uncertainty surrounding the macroeconomic development going into 2025,” CEO Martin Lundstedt mentioned in a press release.
“There is some uncertainty about the macroeconomic development in the near term and this is reflected in our forecasts with relatively flat markets overall for next year,” the CEO added.
($1 = 10.5328 Swedish crowns)
