Volvo reports 23 per cent drop in profit

STOCKHOLM (AFP) – Swedish truckmaker Volvo, one of the world’s largest, yesterday reported at 23 per cent drop in its third quarter net profit but said the impact of the COVID-19 pandemic was easing.

Net profit for the period came in at SEK5.72 billion (USD646 million), compared to SEK7.46 billion a year earlier.

While restrictions owing to the new coronavirus severely impacted sales, CEO Martin Lundstedt noted that “towards the end of the quarter transport activity was back on roughly the same level as a year ago in most markets.”

“After the easing of COVID-19 restrictions, freight activity has increased and customers are returning to previously planned replacement cycles,” Lundstedt said in
a statement.

Compared to a year earlier sales for the group fell by 22 per cent to SEK76.9 billion, led by a 26 per cent drop in truck sales, for the period July to September.

Lundstedt also noted that uncertainty about future developments was “considerable as an increase in the spread of COVID-19 can lead to new restrictions on societies and businesses.”

A view of the headquarters of Volvo is pictured in Gothenburg, southwestern Sweden. PHOTO: AFP