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Swedish business and industry

Profits high, but worries for future

Published tisdag 25 oktober 2011 kl 19.22

Large Swedish companies are beginning to see the impact of the European debt crisis and although profits are still high, there is little optimism for next year.

Today, three of Sweden’s top companies issued quarterly reports.

Volvo reported profits third quarter profits of US $822 million, forestry company SCA the sum of $ US 319.8 million and Swedbank US $654.8 million.

Despite the profits, there were also signs in today’s quarterly reports of the worry that Sweden is beginning to see the impact of the wider European crisis. Bus and lorry manufacturer Scania, for example, says that it will soon decrease its rate of production by 10-15 percent. Bank giant Nordea is also in the process of laying off around 2,000 employees. And Volvo is preparing to reduce the number of lorries it manufactures, which will mean the redundancy of over 400 staff.

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