Volvo Profits Drop, Pollution Rules Blamed
Volvo, the world’s second biggest truck maker, posted an unexpected drop in fourth-quarter pretax profit on Friday.
Volvo blamed exceptional production costs linked to new environmental norms.
The news sent Volvo shares down more than 8 percent and weighed on sector peers such as Scania and Germany’s MAN AG, both of whose shares fell.
Pretax earnings fell to 4.14 billion crowns ($539.6 million) from 4.60 billion a year earlier. The average forecast provided by a Reuters poll of analysts was 4.97 billion.