Good reports from Volvo & Ericsson
Two of Sweden’s most important companies have filed better-than-expected reports for the third quarter.
Volvo, the world number two manufacturer of trucks and other heavy vehicles, announced profits for the quarter of US $ 422 million, compared to loses just over that amount in the same period last year.
Telecoms equipment maker Ericsson reported net profits of 533 million dollars for the quarter, boosted mainly by lower costs and improved performance in its join venture Sony Ericsson. That was more than four times the profit in the same period last year.
This comes a day after similar results for Swedbank, one of this country’s four major banks.
So far this year the Stockholm exchange has gone up by 17 percent, and recent weeks have seen a strong rise by the Swedish krona against both the dollar and the euro.
But experts are expressing concerns about the future, as the economic recovery in other parts of Europe has stagnated, and Britain and other countries continue to have problems in their state finances.
And while the rising krona reflects a stronger economy and will make it cheaper to buy goods from abroad here, it will also have a negative impact on the important exports sector, says Robert Bergquist, the head economist at the banking group SEB.
He says there is a risk for a slowdown here, just as there is in Asia, other parts of Europe, and the United States. He says he expects orders to drop in the beginning of next year.
Robert Berquist also doesn’t see rehiring coming among companies who have laid off employees.
Instead he says, we can expect jobs to continue to move to Asia because of the cheaper labor market there, but also because of growing markets, and companies will want to get as close to customers as possible.