Volvo profits down as truck sales fall 7% in North America
But demand for heavy-duty vehicles rose by 23% in Europe.
STOCKHOLM — Swedish truck maker Volvo AB says its first-quarter profits dipped by 11% as demand dropped in North America.
Volvo posted a net profit of 3.8 billion kronor ($468 million), down from 4.2 billion kronor in the same quarter last year.
The company said its sales fell 4% to 71.7 billion kronor, “primarily an effect of the slowdown in the north American truck market.”
Volvo says demand for heavy-duty trucks was down 7% in North America, but rose by 23% in Europe.
The results beat some analysts’ expectations and Volvo shares rose 5% to 98.90 kronor ($12.18) after the announcement.
The company, which has 99,000 employees, sells trucks under the Volvo, Renault, Mack and UD brands. It also makes buses, engines and construction equipment.