Swedish truck manufacturer Volvo Group reported a 30% decline in first-quarter net profit, attributing the drop to a 9% fall in vehicle sales caused by uncertainty over US trade tariffs.
“Recent or potential tariffs imposed by the US and other countries have added significant uncertainty to global and regional supply chains,” the company said. “The situation is evolving quickly, and it’s difficult to predict future impacts or whether we’ll be hit harder than competitors.”
Although all Volvo trucks for the US market are built domestically, component supply remains vulnerable to tariff effects.
As a result, the company cut its full-year forecast for US heavy-duty truck sales by 25,000 units, now projecting 275,000. Forecasts for Europe and China remain unchanged.
First-quarter net profit dropped to 9.98 billion kronor ($1.03 billion), down from 14.1 billion kronor a year earlier—matching analysts’ expectations. Operating profit declined 27% to 13.2 billion kronor, with the margin narrowing to 10.9% from 13.8%.
Adjusted net sales were down 7% at 121.8 billion kronor, and truck deliveries slipped 12%. Volvo noted that uncertainty over tariffs and emissions laws has led many US customers to hold off on purchases.
Despite the challenges, order intake rose 13% year-on-year to 55,227 trucks.
