Volvo cars has reduced profit in the III quarter to $ 310 million. The company intends to expand the program to reduce costs, to improve the profitability of operations
Swedish group Volvo AB, ranks second in the world in terms of production trucks, reduced operating profit in the third quarter of 2014 and announced plans to more substantial than previously planned spending cuts.
Volvo cars has reduced profit by 6.2%
According to a press release from the company, its operating income decreased by 6.2% – to 2.25 billion kronor ($ 310 million). Analysts polled by Bloomberg , on average, had forecast the index at the level of 2.55 billion kronor.
Revenues increased by Volvo cars 3.6% – to 97.2 billion kroner, operating margin decreased to 3.3% of total sales compared with 3.7% a year earlier.
The volume of orders Volvo cars in the July-September increased by 14% – to 50.45 thousand. Trucks. Deliveries to customers decreased by 4.8% – to 45.94 thousand. Car decrease was noted in the Americas, Europe and Asia.
The company intends to expand the program to reduce costs to improve profitability.
Volvo Strategic Development Plan for 2013-2015. anticipated cost reductions totaling $ 6.5 billion kronor, the company now intends to take action to reduce costs further by 3.5 billion kroons.
“The profitability of our operations is not satisfactory, and it is obvious that we still have much to do” – said the CEO of Volvo Olof Persson.
Pearson set out to transform the company into the most profitable producer of heavy trucks in the world. For this, he, including, decided to reorganize production in Europe to expand its presence outside the region and cut a number of jobs in the administration.
The company raised its forecast for sales of trucks in North America as a whole with 260 thousand. 270 thous. In 2014 and said it expects further growth in 2015. In addition, Volvo cars has confirmed the forecast of sales in Europe at the level of 230 thousand., In Brazil – at the level of 90 thousand. Shares Volvo cars rose 11% in trading in Stockholm on Friday.