Welcome development: Volvo salutes higher profits
Volvo shares rose 2.6% by mid-morning in Stockholm
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 24th, 2015.
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 24th, 2015.