Volvo Posts Lower Q4 Core Profit, Lifts Trucks Guidance

posted a drop in its adjusted operating profit for the fourth quarter. The company lifted its forecast for truck markets. Volvo now projects deliveries in Europe to total 240,000 units. It also projects deliveries to reach 310,000 units in North America. Volvo swung to a quarterly net loss of 2.98 billion Swedish kronor ($360 million), versus a year-ago net profit of SEK548 million. It also posted an operating loss of SEK2.26 billion, versus an operating profit of SEK997 million. Its adjusted operating profit slipped to SEK3.02 billion from SEK3.08 billion. Its sales surged to SEK77.5 billion from SEK76.64 billion. The company's order intake in the truck business climbed 16% to 61,222 in the quarter, up from 52,683 in the year-ago quarter. The company's board proposed a dividend of SEK 3.00 per share. The total headcount was lowered by 5,756 people during 2014. Olof Persson, President and CEO said, "In the fourth quarter the Volvo Group had an underlying profitability improvement in its truck business and continued traction in the activities to improve efficiency and reduce the Group's cost base. However, the construction equipment business experienced strong headwinds where many markets outside of North America continued to deteriorate." Volvo shares fell 1.55% to close at $12.03 yesterday.