Truckmaker Volvo's Q1 profits edge down

April 26, 2012

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STOCKHOLM—Despite recording its strongest sales figures for a first quarter, Swedish truck maker AB Volvo has posted a 2 percent drop in profits for the period, mainly due to higher costs.

Thursday's report showed a net profit of 4.01 billion kronor ($595 million) for the first three months of the year, down slightly from the 4.08 billion kronor earned in the same period a year earlier.

Revenues jumped 10 percent to 78.84 billion kronor -- the highest Volvo has ever recorded during a first quarter. They were boosted primarily by sales in the company's key truck unit in North America.

CEO Olof Persson says that, overall, all markets aside from Europe contributed to higher sales.