Volvo stalls in Q4 as construction sector contracts

struction-equipment deliverconstruction-equipment divithe models to a unit in China. market will rise to 240,000 according to economists suries dropped 30 percent, sion’s expected credit losses in The reorganization will result vehicles from the 228,000 veyed by Bloomberg News. An Volvo Group, the world’s secincluding a 44 percent plunge China and 3.79 billion kronor in about 1,000 job cuts, it said delivered last year, versus an index compiled by the Univerond-largest producer of trucks, in Asia, hurt by “weakness” in for a possible European Union at the time. earlier forecast of no growth. sity of Michigan showed US posted a fourth-quarter loss as emerging markets, especially truck-pricing fine, Volvo said. ‘‘Our work toward further “We do see some light spots consumer confidence at an a plunge in construction equipthose that depend on comA deepening economic improving operational perin the economy and also in the 11-year high in January. ment deliveries compounded modity production. slowdown in China prompted formance and lower cost levels truck market” in Europe, PersVolvo owns the Mack comthe effects of provisions for “Whereas previously Volvo the country’s central bank to has good traction,” Chief Execson said on a conference call mercial-vehicle brand in the credit losses and a potential US.enjoyedstrongdemandfromlowerbanks’requiredreserveutiveOfficerOlofPerssonsaidwithreporters. antitrust fine. mining companies and very ratio on Feb 5, easing policy to in an earlier statement. “Going While the North American Volvo’s truck orders in the

The operating loss totaled strong margins on those stimulate growth. forward, we still have a lot of outlook was as expected, “the fourth quarter rose 16 percent, 2.26 billion kronor ($272 milorders, now miners are just A three-year efficiency prohard work ahead of us but conEuropean forecast seems bringing full-year advance lion) compared with profit of not ordering much at all,” gram ends this year, which tartinue to have a good momenambitious, as it assumes very sales contracts to a 3 percent 996 million kronor a year earliHans-Peter Wodniok, a Gergets spending cuts totaling 10 tum.” strong demand during the secgain for a total of almost er, Sweden-based Volvo said in many-based analyst at Fairebillion kronor, will show fullVolvo also raised its North ond half of 2015”, Wodniok 220,000 vehicles. early February in a statement. search, said. year effects in 2016, Volvo said American commercial-vehicle said. German carmaker Daimler Analysts on average had estiEarnings were also hurt by in early February. The compamarket forecast, citing a US gross domestic product AG said earlier that global mated that Volvo would post a reorganization costs totaling ny outlined plans in Novem“robust manufacturing enviexpansion in 2015 will probaorders at its truck division, the profit. Revenue rose 1.1 percent 830 million kronor and previber to end production of ronment” as consumer spendbly accelerate to 3.2 percent, world’s biggest manufacturer to 77.5 billion kronor. ously announced provisions of Volvo-brand backhoe-loader ing bolsters US economic the fastest pace in 10 years, of the vehicles, surged 45 per

Volvo’s fourth-quarter con- 660 million kronor for the and motor-grader and shift growth. Industrywide deliver- from 2.4 percent last year, cent. ies in the region will total 310,000 vehicles compared with an earlier forecast of 280,000 trucks. The European