Truck maker Volvo Group has reported a full year 2008 sales increase, despite a dip in the fourth quarter, leading to earnings per share of SEK4.90, a fall on the SEK7.37 achieved in 2007.
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Fourth quarter net sales dipped 9% to SEK77bn but full year revenue increased 6% to SEK304bn.
A Q4 operating loss of SEK999m compared with operating income of SEK5,775m in Q4 2007. Full year operating income was SEK15,851m, down on the SEK22,231m reported last year.
In a statement on Friday, Volvo said that new truck inventory fell 13% in the fourth quarter while new construction vehicle stock fell 19%, which contributed to a reduction in capital tied-up in inventory by about SEK6bn.
CEO Leif Johansson said: “The consequence of quickly reducing production pace is that it negatively impacts operating income in the short term, since there is a lead time in adjusting the cost structure. We will also feel the effects of this in the first half of 2009.”
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By GlobalDataHe added: “In the prevailing market situation, it is difficult to make an assessment of the truck market trend for 2009. We do not expect a recovery in demand during the first half year, but with agreed and already implemented actions progressively penetrating in the first six months, we are prepared to cope with the troubling situation.”
