STOCKHOLM (AP) — Swedish truck maker AB Volvo has reported a sharp drop in profits for the third quarter, blaming it on an overall slowdown in demand, warning more cuts in its production rates are possible.
Wednesday's report showed a net profit of 1.37 billion kronor ($207 million), down almost 65 percent from 3.83 billion kronor in the same quarter a year ago.
Sales in the three-month period fell to 69.11 billion kronor from 73.32 billion kronor.
Volvo CEO Olof Persson says that in Europe, which is plagued by the debt crisis, "the weak demand has spread from Southern Europe to an increasing number of countries and the normal pick-up of order activity in September was muted."
To fend off over-loaded inventories, he says Volvo will reduce its production rates further.