July 22, 2011 – STOCKHOLM (Reuters) - Volvo <VOLVb.ST> reported in line second quarter earnings on Friday and stuck to its forecast for truck market sales this year, but downgraded its outlook for construction equipment due to a softening in China.
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The group reported an operating profit of 7.65 billion Swedish crowns ($1.20 billion) versus a forecast 7.67 billion crowns in a Reuters poll and last year's 4.77 billion crowns.
The company repeated a forecast for the truck markets in Europe and North America to amount to 230,000-240,000 units each this year. But it downgraded its outlook for its second-largest division, construction equipment, to growth of 15 to 25 percent from 20 to 30 percent.
It said the Chinese construction equipment market was slowing due to government anti-inflation measures.
(Reporting by Patrick Lannin and Simon Johnson)