Welcome development: Volvo salutes higher profits

STOCKHOLM: Shares jumped in Sweden’s Volvo on Friday after the world’s second-biggest truckmaker unveiled a doubling of third quarter net profits. Net profit shot up to 3.1 billion kronor (€327 million/$360 million) in the three months to September 30 from 1.5 billion kronor a year earlier, largely because of the impact of a weaker local currency, the group said. Sales rose nine percent to 73.3 billion kronor, although truck orders - an indicator for future sales - were off 15% and construction equipment orders fell by a third. Volvo said it was more than 40% of the way towards reaching a goal of cutting annual structural costs by 10 billion kronor. Volvo shares rose 2.6% by mid-morning in Stockholm. The group also announced it was selling off its external information technology division, employing 2,600 people, to India’s HCL Technologies.

 

Published in The Express Tribune, October 24^th, 2015.

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