Swedish truck maker Volvo suffers big loss in Q4

Special Report:Global Financial Crisis

STOCKHOLM, Feb. 6 (Chinese media) -- World No. 2 truck maker

Volvo said Friday it suffered a big loss in the fourth quarter last year because

of steeply falling demand.

The Swedish company posted an operating loss of 999 million kronor (about 120 million U.S. dollars), compared with an operating profit of 5.77 billion kronor (about 695 million U.S. dollars) in the same period in 2007.

Volvo CEO, Leif Johansson gives a news conference to present the company's financial report in Stockholm February 6, 2009. World number two truckmaker Volvo sank to an operating loss in the fourth quarter as orders slowed to a trickle, and said its key European market was likely to fall further this year. The Swedish company reported an operating loss of 999 million crowns ($120 million) in October through December.(Chinese media/Reuters Photo)
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Fourth quarter sales fell 9.0 percent to 76.95

billion kronor (about 9.27 billion U.S. dollars) from 84.6 billion kronor (about

10.19 billion U.S. dollars) in the same quarter in 2007.

For the full year 2008 Volvo still made an operating

income of 15.85 billion kronor (about 1.9 billion U.S. dollars), while the net

sales increased by 6 percent to 304 billion (about 36.6 billion U.S. dollars).

Volvo delivered 251,150 vehicles last year, up 6.0

percent over 2007. But deliveries fell 22 percent in the fourth quarter. It

expected the truck market would still be weak in its primary markets of Europe

and North America in 2009.

"We do not expect a recovery in demand during the

first half-year, but with agreed and already implemented actions progressively

penetrating during the first six months, we are prepared to cope with the

troubling situation," Chief Executive Leif Johansson said in a statement.

Volvo, which sold its car division to Ford Motor Co.

in 1999, also makes buses, engines and construction equipment. It also owns

Renault Trucks, Mack Trucks and Nissan Diesel.