AB Volvo says it lost 14.7 billion kronor (€1.4 billion) last year, reversing a net profit of 10 billion kronor (€982 million) in 2008. Revenue plunged 28% to 218 billion kronor (€21.4 billion).
The Swedish truckmaker says its annual operating loss was 17 billion kronor (€1.7 billion) compared to an operating profit of nearly 16 billion kronor (€1.6 billion) in 2008.
Volvo’s fourth-quarter loss widened to 2 billion kronor (€196 million) from 1.3 billion (€128 million) in 2008, as revenue fell 23% to 59.8 billion kronor (nearly €5.9 billion). The company’s operating losses for the quarter more than doubled to 2.3 billion kronor (€226 million). Fourth-quarter results included writeoffs for layoffs, inventory write-downs and restructuring charges.
Volvo says it reduced inventories by 25% in the fourth quarter and posted year-over-year sales gains in Europe and South America. The company expects both markets to “gradually improve” this year.
Volvo predicts industrywide sales of heavy trucks will grow 10% to 180,000 units in Europe and 20%-30% to 115,000 units in North America this year.