Volvo makes an adjusted operating profit of 11.7 billion kronor for the year's third quarter, compared to 14.1 billion kronor a year earlier.
It was still better than feared. The average forecast among analysts was an adjusted profit of 11.3 billion kronor, according to a forecast compilation made by the news agency Bloomberg.
Revenues fell from 117.0 billion kronor to 110.7 billion. Deliveries decreased by four percent to 44,600 trucks, while new truck orders fell by a whole 14 percent to just over 37,100 units.
Uncertain market conditions in North America and South America negatively affected sales and are squeezing profitability there, according to CEO Martin Lundstedt.
Right now it's messy, you can't hide that, says Lundstedt, and points to tariffs and new legislation on emissions that make customers wait.
Fewer trucks
The net effect of higher tariffs landed at half a billion kronor and the stronger krona has reduced the result by 1.6 billion during the quarter. During the fourth quarter, the Volvo management expects the tariffs to cost the group one billion kronor, according to the quarterly report.
As a result, Volvo expects to sell fewer trucks in North America next year.
But Lundstedt points out that other parts of the group are doing well. Volvo Penta is making a record result, the construction equipment and buses are also doing well.
"A strong Volvo"
In Europe, Lundstedt expects the truck market to strengthen slightly.
Overall, it's a strong Volvo looking into the future.
The market for electric trucks is not picking up much pace.
There are many uncertain parameters for customers, says Lundstedt and points, among other things, to uncertainty surrounding the stricter environmental legislation that is coming within the EU.
