Volvo Q1 Profit Down On Weak Volumes; Orders Climb

(RTTNews) - Swedish commercial vehicle major AB Volvo (VOLVY.PK) reported Wednesday sharply lower profit in its first quarter as revenues were hit by weak volumes. As the quarter went by, there was increased uncertainty surrounding tariffs and their effect on global trade, the company noted. However, the company recorded higher orders in the quarter.

In the first quarter, income attributable to owners of the company fell to 9.89 billion Swedish kronor from 14.08 billion kronor last year. Earnings per share were 4.86 kronor, lower than 6.92 kronor a year ago.

Adjusted operating income dropped to 13.26 billion kronor from last year's 18.16 billion kronor. Adjusted operating margin of 10.9 percent dropped from 13.8 percent in the prior year.

In the quarter, net sales decreased 7 percent to 121.79 billion kronor from prior year's 131.18 billion kronor. When adjusted for currency movements, the decrease was also 7 percent.

Sales of vehicles were 9 percent lower than last year.

Deliveries in truck business declined by 12 percent to 48,833 trucks, and the currency-adjusted net sales decreased 9 percent to 82.2 billion kronor. Order intake, however, rose 13 percent to 55,227 trucks, with increases in all markets except South America.

Construction Equipment's deliveries increased 7 percent and orders climbed 24 percent, while net sales fell 8 percent.

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