AB Volvo Reports Larger-than-Expected Drop in Q3 Profit Amid Normalizing Truck Demand

AB Volvo Sees Decreased Profit Amid Demand Normalization

Swedish truck maker AB Volvo announced a disappointing third-quarter adjusted operating profit of 14.1 billion crowns ($1.34 billion), down from 19.3 billion crowns a year earlier and falling short of analyst expectations of 15.6 billion crowns, according to an LSEG poll. This reflects a 12% drop in sales, highlighting the ongoing slowdown in demand for heavy trucks.

The market for heavy trucks has been stabilizing following a post-pandemic surge, as demand returns to normal levels. Volvo forecasts the European heavy truck market for 2024 will reach 290,000 vehicles, while the North American market is expected to total 300,000 vehicles.

In terms of current market predictions, Volvo has revised its 2023 outlook for the European heavy truck market to 300,000 new vehicles, up from 290,000 estimated in July, while maintaining its forecast for North America at 290,000 vehicles.

*Exchange rate: $1 = 10.5328 Swedish crowns.*