The Swedish lorry maker Volvo, have reported a greater than expected...
The Swedish lorry maker Volvo, have reported a greater than expected loss for the first quarter of the year, as sales of trucks and construction equipment fell. Volvo, which is the world's second largest maker of heavy trucks said that this year will be ?difficult? as US demand is weak.
The loss narrowed to 746 million kronor ($72 million), or 1.8 kronor a share, from 801 million kronor, or 1.9 kronor, from a year ago, Volvo said in a statement on Waymaker.
Volvo and its rivals such as DaimlerChrysler, the number one truck maker, and Scania have all been hurt by a declining demand amid weak economic growth. Volvo expects truck makers' sales to drop by a tenth during 2002. The company eliminated 7,100 jobs, or about ten percent of its workforce, in 2001.
?These are really weak results,? said Carl Holmquist, an analyst at Danske Securities in Stockholm. ?The big surprise was the loss at the construction division, which we had expected to post a profit.?