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Volvo reported growth of the net profit

The Swedish automaker Volvo today announced an increase in the net profit and orders received in the third quarter but said it is difficult to assess the development of world economy and the impact on demand over the next year. The net profit was 3.83 billion Swedish kronor (583 million USD) compared to 2.81 billion Swedish kronor in the same period of 2010, revenue grew 15% to 73.32 billion Swedish kronor. Operating profit reached 5.77 billion Swedish kronor from 4.91 billion a year ago, and orders for trucks increased by 18% to 59,975 units. The company, which ranks second in world production of trucks after the German concern Daimler AG, said it expects 10% drop in demand in Europe, but an increase in orders from North America due to the replacement of older trucks, and growth in Japan in the ongoing rehabilitation of the country after the devastating earthquake and tsunami waves in March this year. From Volvo remain cautious about global growth in orders, indicating that monitor user activity. The company plans to reduce production to Europe in 2012 to be closer to expected lower orders in the region.
"The total market for 2012 is difficult to predict because of the uncertain macroeconomic situation", said CEO Olof Persson Volvo. "In the short term, carefully observed trends in demand and access to liquidity through the financial system. A possible deterioration may change our expectations for next year", he added.