Swedish truck maker AB Volvo on Friday reported a third-quarter net loss of 2.9 billion kronor ($423 million), due to a steep drop in sales in Europe and the U.S., but said demand was stabilizing, particularly in Asia.
It was the fourth consecutive quarterly loss for the company and compares with a previous income of almost 2 billion in the same three months a year ago.
Revenue in the period slided down more than 30 % to 48.5 billion kronor from 69.8 billion kronor in the third quarter in 2008.
The biggest drops were recorded in its truck and construction equipment units. Revenue for the truck division, Volvo's largest business area, fell 34 % in the quarter, mainly because of weaker demand on the European market.
Volvo kept its 2009 heavy-duty truck forecast for that market unchanged, saying it expects it to "be at least halved" from last year.
For North America, where sales also fell steeply, it said it expects the market for heavy-duty trucks to drop between 30 and 40 percent this year from 2008 levels.
The Volvo share gained 3 % to 68.50 kronor ($9.98) in early morning trading.
Volvo, headquartered in Goteborg, also makes buses, engines and construction equipment. It sold its car division to U.S.-based Ford Motor Co. in 1999, which now has announced that the car unit is for sale.
The Associated Press has contributed to the report.