Truckmaker Volvo posts 4Q loss of $364 million as demand for construction equipment weakens

IndustriesAssociated Press

Swedish truck maker AB Volvo has posted a fourth-quarter loss of 3 billion kronor ($364 million), compared with a 548 million-kronor surplus last year, in the face of weak demand for construction equipment.

The Goteborg-based company says sales in the last three months of 2014 rose slightly to 77.5 billion kronor ($638.249) from 76.6 billion kronor in the same period last year.

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Volvo Group said the construction equipment business experienced "strong headwinds" as markets outside of North America continued to deteriorate.

CEO Olof Persson said Thursday Volvo Trucks had reduced a net financial debt by nearly 10 billion kroner ($824 million) last year. However, "we still have a lot of hard work ahead of us."