Volvo 4Q operating profit surges

GOTHENBURG, Sweden (Feb. 15, 2000) — The world’s second-largest maker of heavy trucks, Volvo AB, says that 4Q/99 operating profit (excluding the car division, which it sold to Ford last year) rose 45.5% over the year-before quarter.

The $243 million US figure compares to approximately $167 million in fourth-quarter 1998. Volvo said it sold 39,630 trucks in Western Europe in 1999 (up 5% over 1998), and 34,300 trucks in North America last year (up 17% over the year before).

However, total orders for new trucks dropped 21% in 1999 compared to the year before, dragged down by declining North American demand. As a result, the company sees demand in Western Europe to be the driver for year 2000 sales, while North American activity slackens. Sales in Asia and South America are also expected to increase.