Swedish truck maker Volvo AB reportedly posted a profit in the fourth quarter, reversing a year-ago loss, thanks to rising demand from buyers in Europe and North America.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to the Associated Press (AP), the Goteborg-based company posted a profit of 3.49 billion kronor (€384.7 million, $US492.7 million), or 8.4 kronor (€0.92, $1.18) a share, in the three months ended December 31, compared with a loss of 2.9 billion kronor, or 6.9 kronor a share, in the same period in 2003. The year-earlier quarter included a 3.6 billion kronor write-down of its shares in Scania and 429 million kronor for Henlys Group PLC.
Revenue reportedly rose to 57.1 billion kronor (€6.3 billion, $8 billion) from 48.7 billion kronor a year earlier.
For the year, AP said, the company posted a profit of 9.4 billion kronor (€1 billion, $1.3 billion), or 22.4 kronor (€2.45, $3.14) a share, compared with 298 million kronor, or 0.71 kronor a share, in 2003. Sales were up to 201.4 billion kronor (€22.2 billion, $28.4 billion) from 174.7 million kronor.
AP said the truck maker stuck with its forecast for growth in the heavy truck segment of its market, and said its board plans to pay a dividend for the year of 12.50 kronor (€1.37, $1.76) a share, up from the 8 kronor in paid in 2003.
Truck deliveries to the end of 2004 rose 48% in North America and 12% in Europe, with some 193,000 vehicles sold, the report added.
“Demand, as a whole, is high in North America, South America, eastern Europe and Asia and the workload in the plants will remain high,” chief executive Leif Johansson said, according to the Associated Press.
In the heavy truck segment, Volvo said it expects the market to grow in 2005 by between 15 and 20% in North America and by as much as 5% in Europe, matching a target given in November.
