STOCKHOLM (AP) — Swedish truck and bus maker AB Volvo says sliding sales, weak foreign exchange rates and costs related to the rollout of new products resulted net profit falling by more than half in the second quarter.
The company said Wednesday that net profit for April-June period was 2 billion Swedish kronor ($309 million), compared to 4.9 billion kronor last year. Sales dropped by 12 percent to 72.7 billion kronor from 82.9 billion in 2012. Compared with the first quarter this year, sales increased by 25 percent.
Volvo CEO Olof Persson said global demand for trucks was "relatively stable" except in Brazil where demand "continued to develop strongly" and India where the market is "considerably tougher."
He said international demand for construction equipment remained weak and that the bus market was tough.