Truckmaker Volvo Group’s net sales and earnings per share dropped last quarter, with the company cutting its sales forecast for North America due to tariffs.
Net sales were down 5% year-over-year to SEK110.7 billion ($18 billion AUD), or up 1% when adjusted for currency movements. Earnings per share declined to SEK3.71, from SEK4.93.
“We are in a period with weaker demand in our key regions and with increased uncertainty in North America. In this situation, we focus on what we can impact,” said Volvo Group CEO Martin Lundstedt.
“We have adjusted our operations, applied strict cost control, remain firm on commercial conditions and drive our service business.”
Adjusted operating income was SEK11.71 billion, down from 14.07 billion, but above Bloomberg-compiled estimates of 11.3 billion. Its adjusted operating margin was 10.6%, falling from 12.0%.
Volvo Group reported a net tariff hit of SEK500 million, and expects an impact of around SEK1 billion next quarter. Imported medium and heavy-duty trucks will face a 25% tariff in the United States from 1 November.
Vehicle sales fell by 6% last quarter, and services sales dropped by 2%. While vehicle sales were up 4% in Europe, sales declined in all other regions, including by 14% in North America and 16% in South America.
The company projects full-year heavy-duty truck sales of 265,000 in North America, a decrease of 10,000 from its previous forecast. Its forecast for Europe remains unchanged at 290,000.
Its net truck order intake was 37,134 vehicles, below the 43,234 ordered one year ago. It delivered 44,631 trucks, down from 46,266.
Volvo Group’s (STO: VOLV-B) share price closed at SEK247.40, falling from its previous close at 268.20. Its market capitalisation is SEK503.52 billion.
Related content
