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18-06-2012 09:18:00

Volvo Re-evaluates Prod Hikes As May Truck Deliveries Drop

Relateret indhold

Swedish truck maker Volvo AB (VOLV-B.SK) Monday said it is evaluating if announced production rate increases will be implemented as planned given the current economic uncertainty, as it reported a 3% drop in total truck deliveries in May compared with last year, driven by weakness in Western Europe.

MAIN FACTS:

-Total May truck deliveries for all brands, including Volvo, Mack, Renault, UD and Eicher, amounted to 19,734 vehicles, down from 20,258 vehicles a year earlier.

-European deliveries fell 17% to 7,481 trucks from 9,006 vehicles, with an 8% increase in Eastern Europe failing to offset a 23% drop in Western Europe.

-"Given the current economic development in Europe, we are evaluating if the announced increases in production rates will be implemented as planned," Volvo said.

-North American truck deliveries rose 31% to 4,677 trucks from 3,571 vehicles.

-In South America, deliveries fell 19% to 1,982 trucks from 2,435 vehicles, weighed down by the implementation of new emissions regulations requiring Euro V technology, as well as the slow economic growth in Brazil and Argentina.

-Deliveries for light-duty truck fell 37% to 1,388 while they increased 12% for medium-duty truck to 2,781 and remained flat for heavy-duty vehicles at 15,566.

-Shares opened 1.5% higher at SEK78.25.

-Write to Anna Molin at anna.molin@dowjones.com

(END) Dow Jones Newswires

June 18, 2012 03:18 ET (07:18 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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