Since Ericsson and Nordea recently submitted interim reports, the next big giant on the Stockholm Stock Exchange has now delivered quarterly figures. For truck manufacturer Volvo, however, it was a significant miss. The profit before tax landed at 13.6 billion kronor, a marked decrease compared to the same period last year (18.6 billion) and also worse than analysts' expectations (15 billion).
The sales were also worse than expected, partly due to temporary disruptions in the production of Mack trucks. Despite this, the stock is holding up on the stock exchange, with only a marginal decline in the morning.
The company is now seeing a decreased transport and construction activity in many regions due to the recession. However, there is no reason to worry, according to CEO Martin Lundstedt:
I think it's going well. The third quarter is a stable quarter. The group is adapting well. I still think we show a strong position, he says.
Cannot be ruled out
He cannot, however, entirely rule out the possibility of staff reductions due to decreased production:
We have already done a lot. But with that said, one should never say never.
The order intake for trucks decreased by seven percent to approximately 43,000 trucks compared to last year. However, ahead of 2025, the Volvo management expects unchanged delivery levels compared to 2024.
We see that it's starting to level out and stabilize and follows quite well the patterns we have counted on, says Lundstedt.
Must adapt
The electrification of the truck industry is going too slowly, thinks Martin Lundstedt. There is not sufficient demand from customers for electric trucks at present. This has led the group to, among other things, postpone the investment in an own battery factory in Mariestad.
The long-term plans remain, but we must adapt to the prevailing conditions, says Lundstedt.
Does it risk becoming expensive for you if you have invested incorrectly?
I feel secure with the investment plans we have. We are not investing in giant steps, but taking it step by step.
