Swedish automaker Volvo AB, which ranks second in the world on the number of manufacturing trucks, reduced net profit for January-March 2016 by 11.3% to 3.77 billion kronor, equivalent to $463.3 million. According to a report by The Wall Street Journal, previously experts predicted decrease of this indicator to 2.92 billion kroons. Concern revenue decreased by 4.1% - to 71.71 billion kronor, this level has coincided with forecasts of analysts. Also press release noted that the operating margin decreased from 9.1% to 7.5% in the previous quarter.
According to Volvo experts, demand for trucks in North America has declined. Earlier this year, management of automobile concern has promised to significantly reduce operations in this region. As the Company expects, by the end of 2016, Volvo will sell in North America about 250 thous trucks - it is 10 thous cars less than recent forecasts. By the end of 2015, Volvo Group sold in North America 301.7 thous trucks.
Reports of the company reported that market of heavy trucks in North America decreased by 7% in the first quarter. At the same time, according to Volvo's expectations, Eurozone market may continue its growth against the background of urgent need to update the park of trucks. At Friday's tradings Volvo's stocks rose by 4.3%.