Swedish truckmaker AB Volvo sees its second-quarter profits fall by 5%


AP

STOCKHOLM — Swedish truckmaker AB Volvo on Tuesday saw its second-quarter net profits fall by nearly 5 percent, mainly on the back of a fall in sales in Brazil and Europe and higher investment costs related to future products.

Net profit in the three-month period came to 4.86 billion kronor (US$697 million), down from the 5.12 billion kronor recorded in the same three months a year ago.

The Goteborg-based group noted its strongest-ever sales in the quarter however, reaching 83.9 billion kronor from 78.96 billion kronor, but the trend was not able to offset neither the rising costs or the tighter operating margin, which fell to 8.7 percent from 9.7 percent.

Volvo CEO Olof Persson said the company’s biggest unit, the truck operations, was particularly affected by this, with a higher proportion of its sales going to the North American market in the quarter, and less to the Brazilian and European markets.