New Product Launches Hurt Volvo Earnings
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.