AFP- Shares jumped in Sweden’s Volvo yesterday after the world’s second-biggest truckmaker unveiled a doubling of third quarter net profits.
Net profit shot up to 3.1 billion kronor (327 million euros/$360 million) in the three months to September 30 from 1.5 billion kronor a year earlier, largely because of the impact of a weaker local currency, the group said.
Sales rose nine percent to 73.3 billion kronor, although truck orders -- an indicator for future sales -- were off 15 percent and construction equipment orders fell by a third.
Volvo said it was more than 40 percent of the way towards reaching a goal of cutting annual structural costs by 10 billion kronor.
Volvo shares rose 2.6 percent by mid-morning in Stockholm.
The group also announced it was selling off its external information technology division, employing 2,600 people, to India’s HCL Technologies.
For the core business, Volvo said strong sales in North American and Europe were partially offset by a decline in South America, saddled with an economic slowdown notably in Brazil, while also citing falling Chinese demand as a concern.
Volvo said it saw demand falling in North America, albeit from high levels.
The results came under new chief executive Martin Lundstedt, brought in this year from Volkswagen-owned rival Scania to boost profitability and oversee restructuring at the group. Volvo Group is separate to Volvo Car Corporation, which was sold to Ford in 1999.