STOCKHOLM – Swedish truck maker AB Volvo saw profits tumble in the fourth quarter as sales slumped 17 percent on weakening demand in key markets.
The net profit in the final three months of 2012 was 793 million kronor ($125 million), down from 4.72 billion kronor in the same period a year earlier.
Sales fell to 71.8 billion kronor from 86.5 billion kronor in the fourth quarter of 2011.
Volvo said Wednesday that demand for trucks sagged in southern Europe and Japan while "North American customers have remained cautious because of uncertainty about the future economic development."
Last month Volvo announced it would buy a 45 percent stake in China's Dongfeng Motor Group Co. — a deal it said would make it the world's biggest heavy trucks maker.