net profit fell 23% in Q3

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net profit fell 23% in Q3







© KEYSTONE/AP/JAE C. HONG


The Swedish manufacturer of heavy trucks Volvo Group, one of the world leaders in the sector, announced Friday a decline in the group’s net profit of 23% over one year in the third quarter, to 5.72 billion crowns (589 million francs).

This decline is the consequence of a thinning order book in the previous quarter, due to the epidemic of the new coronavirus, but “towards the end of the quarter, the transport activity was at about the same level as there is one year in most markets, “noted the group’s CEO, Martin Lundstedt, in the report presented four days ahead of schedule.

The Asian market remained stable and Volvo strengthened its presence in China, with orders rising 47% in the quarter.

From July to September, sales also fell 20% year on year to 76.9 billion crowns, weighed down by a 26% drop in truck sales.

After the easing of restrictions put in place to curb the spread of Covid-19, freight activity has picked up again with a return from customers while coaches continue to suffer with a low number of passengers transported.

“A certain catching-up effect from the weak order book of the previous quarter had an impact on truck order requests, which increased by 61% compared to a mixed third quarter last year,” said congratulated Mr Lundstedt in the report.

The public transport sector (buses) is doing better, also judged the general manager.

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