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New Product Launches Hurt Volvo Earnings

Swedish truck maker AB Volvo enjoyed strong sales in the fourth quarter, but its earnings were hurt by extra costs linked to the launch of new products, write-downs and restructuring charges.

HELSINKI (AP) -- Swedish truck maker AB Volvo enjoyed strong sales in the fourth quarter, but its earnings were hurt by extra costs linked to the launch of new products, write-downs and restructuring charges.

Net profit in the last three months of 2013 fell to 548 million kronor ($86 million), from 869 million kronor in the same period a year earlier. Sales rose to 76.6 billion kronor, from 70.8 billion kronor in 2012.

Describing profitability in the period as "unsatisfactory," the company said Wednesday it would continue cost-cutting measures during 2014, including 4,400 layoffs it had already announced, and will review its products portfolio.

Volvo said it expects a slight growth in overall demand, driven mainly by China and Europe, but added that 2014 will see a reduction in costs.

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