Lower Truck Sales, Higher Costs Hurt Volvo Q4 Profits, Margins
North American Truck Unit Costs Soar on Helene, VNL Rollout
Volvo’s order intake in the fourth quarter was due partly to the ramp-up of the VNL. (Volvo Trucks)
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A decrease in truck sales in North America and Europe plus increased production costs in the U.S. dragged on Volvo Group AB profits in the fourth quarter of 2024, the company said Jan. 29.
The Swedish truck, construction equipment and engine manufacturer posted a profit of $983 million in the most recent quarter, down 10.5% compared with $1.1 billion a year earlier. All Volvo financial data are reported in Swedish kronor, and dollar conversions are correct as of Jan. 29.
Volvo’s Q4 sales revenue decreased 6% year over year to $12.57 billion from $13.44 billion, with revenue from truck sales down 4% to $8.67 billion from $8.98 billion in the final three months of 2023.
The company sold 58,706 trucks worldwide in Q4, down 11% compared with 65,625 a year earlier. Sales of heavy-duty trucks decreased 6%, medium-duty truck sales fell 17%, and light-duty truck sales, particularly in Europe at the company’s Renault unit, slumped 38%.
Volvo Group Q4 2024 Quarterly Report
The Got…
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