Volvo Trucks has reported a sharp fall into the red in its first quarter of the year, as sales fell 27% on the same period last year.

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However the truckmaker’s CEO told reporters today that there were no plans to make further job cuts at present.


Volvo reported that net sales decreased by 27% to SEK56.1bn. Adjusted for currency fluctuations, net sales decreased by more than 40%.


The first quarter operating loss amounted to SEK4,528m, compared to operating income of SEK6,487m in the same period a year ago.


In the first quarter, basic and diluted earnings per share amounted to a negative SEK2.09m, compared to a positive SEK2.07m, in Q1 2008.

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Preseident and CEO Leif Johansson said: “Demand weakened sharply in all markets during the first quarter. The economic climate was very difficult in the group’s markets in Europe, North America and Asia. Adjusted for currency movements, sales fell by more than 40%… in a historically weak quarter.”


He added: “As a consequence of the sharply weakened demand, we continue to implement measures to adapt capacity and reduce costs, which unfortunately has forced us to reduce personnel. Although we are maintaining a high pace it will take a few quarters before the actions taken will reduce costs by about SEK9bn annually.”


Volvo has already announced plans to axe more than 20,000 jobs across the group.


However, speaking to reporters today Leif said: “I think at present that there will not be any more redundancies, but in many parts of the group we are (running) at very low levels and we need to adapt to lower costs.”


However, according to Reuters, he added: “”When you lose SKR4.5bn in a quarter you can’t just sit there and do nothing.”


Looking ahead, Leif said: “The substantial economic stimulus measures put in place combined with interest rate cuts by central banks around the world, will over time contribute to drive demand for our products. So far we have seen that the measures taken in China have led to improved demand for construction equipment there towards the end of the quarter. Although these are positive signs, it is too early to talk about a sustainable recovery.


“However, I am convinced that we will return to more normal market levels. I am also optimistic about the future possibilities for the Volvo Group. We have the products that customers want, as evidenced by continued high market shares, and we are active in industries characterised by long-term growth.”