Truckmaker Volvo hit by US and European downturn

Truck and busmaker Volvo has blamed weak US and European trading for a fourth-quarter loss.

It has posted a €52.7m net loss, compared with a €128.8m profit last time.

Volvo says its results have been "unsatisfactory throughout the entire year".

Net sales for the quarter to December 31 were €5.25bn, up from €3.5bn in the same period of 2000.

Over 2001, net sales rose by 50% to €19bn.

The group says growth in Eastern Europe, Asia and South America was insufficient to offset a steep drop in North America, where the total market for its key truck division declined by 34%.

Volvo also says demand for trucks was lower in Europe, although the total market would remain "at a relatively favourable level".

During 2001, Volvo reduced its workforce by cutting the jobs of some 5,700 full-time employees and 1,400 temporary workers and consultant.

Chief executive Leif Johansson says: "The structural changes were implemented under difficult economic conditions, resulting in many painful, yet necessary decisions."