Volvo trucks reports big 4th quarter loss

STOCKHOLM: Swedish truck maker Volvo on Friday reported a heavy net loss in the fourth quarter in the face of crumbling demand, which it said would remain weak through the first half of 2009.

Volvo recorded a net loss of 1.348 billion kronor (128 million euros, 163 million dollars) in the final three months of 2008 against net profit in fourth quarter 2007 of 4.0 billion kronor.

Fourth quarter sales fell 9.0 per cent to 76.95 billion kronor.

For the full year 2008 Volvo suffered a 33 per cent plunge in net earnings to 10.01 billion kronor from sales that rose 6.0 per cent to 303.66 billion kronor.

The company predicted a further erosion in the market in 2009.

"We do not see a return of demand during the first half," Volvo chief executive Leif Johansson said in a statement.

The statement said demand in North America and Japan in particular would remain sluggish in the first six months of the year.

Volvo delivered 251,150 vehicles last year, up 6.0 per cent over 2007. But deliveries fell 22 per cent in the fourth quarter.