Volvo says restructuring to bring savings

Swedish truck maker Volvo, posting a large first quarter loss, said today it was restructuring at the cost of more than euro …

Swedish truck maker Volvo, posting a large first quarter loss, said today it was restructuring at the cost of more than euro 438 million over three years to achieve large savings and boost profitability.

The company said it booked restructuring charges of 1.3 billion crowns in the first quarter which pulled its results into the red for a 1.25 billion crown loss after financial items.

Volvo reported sales of euro 4.8 billion against euro 4.7 billion market forecast.

Volvo's chief executive Mr Leif Johansson said Volvo saw no quick recovery on its key North American market which was hard hit by the global economic slowdown.

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"The cyclical situation at present is difficult but in the longer term we view very positively our possibilities to raise profitability," he said.