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Last Updated: Tuesday, 25 October 2005, 13:22 GMT 14:22 UK
Record profits for Volvo trucks
Volvo trucks with globetrotter cabs
Volvo trucks can come with bunks, fridges and cooking equipment
Truck maker Volvo has reported record quarterly profits, driven by strong demand in the US, Europe and Asia.

Pre-tax profit was 4.02bn kronor ($507m; 287m) in the three months to 30 September from 1.52bn a year ago.

Earnings last year suffered from a 1.31bn kronor charge relating to a revaluation of Volvo's bus business.

Analysts welcomed the figures, but said they were concerned that the company was forecasting flat sales growth in the US and Europe next year.

Limit to growth

"The single most important aspect is that the market looks stronger this year, which is positive," said Fredrik Westin, an analyst at West LB.

"But at the same time they see a flat market in the US next year, and that is a little bit of a disappointment," Mr Westin said.

The company, which owns the Renault, Mack and Volvo brands, tried to play down their worries.

"There are those who are disappointed that the US market is seen flat next year, but based on a 25% increase this year, the US market simply can't grow any more," said chief executive Leif Johansson.

The company, which sold its car brand to Ford in 1999, said that European sales will increase by 5% this year, compared with 25% growth in the US.

"We were slightly negative about Europe in the second quarter, but in the third quarter Europe has come back," Mr Johansson said.

Total sales rose to 52.53bn crowns from 46.02bn a year earlier.


SEE ALSO:
GM looks to sell truck divisions
24 Oct 05 |  Business
Volvo plans up to 1,500 job cuts
23 Aug 05 |  Business
Volvo in worldwide vehicle recall
14 Sep 04 |  Business
Volvo recalling 105,000 vehicles
10 Feb 04 |  Business


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