Volvo profits down as truck sales fall in North America

23 April 2016, 12:00AM

Swedish truck maker Volvo AB says its first-quarter profits dipped by 11 percent as demand dropped in North America.

Volvo posted a net profit of 3.8 billion kronor ($468 million), down from 4.2 billion kronor in the same quarter last year.

The company said Friday that its sales fell 4 percent to 71.7 billion kronor, "primarily an effect of the slowdown in the north American truck market."

Volvo says demand for heavy-duty trucks was down 7 percent in North America, but rose by 23 percent in Europe.

The results beat some analysts' expectations and Volvo shares rose 5 percent to 98.90 kronor ($12.18) after the announcement.

The company, which has 99,000 employees, sells trucks under the Volvo, Renault, Mack and UD brands. It also makes buses, engines and construction equipment.

23 April 2016, 12:00AM

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