STOCKHOLM: Swedish truck manufacturer Volvo Group reported a significant decline in third-quarter net profit on Friday.
The company attributed this downturn to weaker demand in the United States market.
Volvo Group cited ongoing tariffs and uncertainty surrounding emission regulations as key factors affecting performance.
Net profit after tax decreased by 25% to 7.6 billion kronor ($804 million) during the quarter.
Sales also declined by five percent to 110.7 billion kronor compared to the same period last year.
Chief Executive Martin Lundstedt acknowledged the challenging market conditions in the company’s earnings statement.
“We are in a period with weaker demand in our key regions and with increased uncertainty in North America,“ Lundstedt stated.
He further explained that the Volvo Group experienced net sales growth in Europe during the quarter.
“More difficult market conditions in North America and South America impacted sales negatively,“ the CEO added.
The company noted that North American customers are adopting a cautious approach due to multiple factors.
A weak freight market is contributing to this cautious sentiment among customers.
Uncertainty about upcoming US emission standards scheduled for 2027 is also affecting purchasing decisions.
The impact of US tariffs on imports represents another significant concern for the company.
Volvo Group anticipates a substantial financial impact from these tariffs in the coming months.
The company expects to face a one-billion-kronor hit from tariffs during the final quarter of this year. – AFP
