Related News
Truck maker at eight-year high
By Chad Thomas |
February 7, 2009, Saturday
|
Print Edition
Print Edition
VOLVO surged the most in almost eight years in Stockholm after saying it would deepen costs cuts and pay a dividend.
The Swedish truck maker aims to pay a dividend of 2 kronor for last year, down from 5.5 kronor a year earlier, Volvo said yesterday, as it announced fourth-quarter earnings. Volvo lost 1.36 billion kronor (US$165 million) in the period, and said it would be adapting to lower demand.
Volvo's decision to maintain a payout contrasts with Swedish companies including Electrolux and SEB, who abolished their dividends to preserve cash. Volvo's fourth-quarter truck orders dropped 82 percent, as cancellations in Europe exceeded bookings. The company is cutting 15,900 permanent and short-term positions, Bloomberg News said.
"Volvo is trying to adjust its manufacturing production to the lower demand on truck and construction equipment," said Jose Asumendi, an analyst at Royal Bank of Scotland in London. "We're going to have two or three difficult quarters but we're getting to the point where earnings will trough."
Volvo gained as much as 6.6 kronor to 41.50 kronor in Stockholm yesterday, the most since March 20, 2001.
Last year, the shares lost 60 percent in value, their worst annual return since at least 1990.
Volvo's loss compares with a profit of 4.06 billion in the same period in 2008.
The Swedish truck maker aims to pay a dividend of 2 kronor for last year, down from 5.5 kronor a year earlier, Volvo said yesterday, as it announced fourth-quarter earnings. Volvo lost 1.36 billion kronor (US$165 million) in the period, and said it would be adapting to lower demand.
Volvo's decision to maintain a payout contrasts with Swedish companies including Electrolux and SEB, who abolished their dividends to preserve cash. Volvo's fourth-quarter truck orders dropped 82 percent, as cancellations in Europe exceeded bookings. The company is cutting 15,900 permanent and short-term positions, Bloomberg News said.
"Volvo is trying to adjust its manufacturing production to the lower demand on truck and construction equipment," said Jose Asumendi, an analyst at Royal Bank of Scotland in London. "We're going to have two or three difficult quarters but we're getting to the point where earnings will trough."
Volvo gained as much as 6.6 kronor to 41.50 kronor in Stockholm yesterday, the most since March 20, 2001.
Last year, the shares lost 60 percent in value, their worst annual return since at least 1990.
Volvo's loss compares with a profit of 4.06 billion in the same period in 2008.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
