Volvo reports Q2 loss of Kronor 5.56 b

Truck maker Volvo has reported a loss of 5.56 billion Swedish Kronor in the second quarter of June this year due to a severe drop in demand amid the global financial crisis.

The company, which has significant presence in India, had an income of 5.14 billion Swedish Kronor in the second quarter in 2008.

Net sales declined to 53.95 billion Swedish Kronor in the latest quarter from 80.30 billion Swedish Kronor in the corresponding year ago period, a Volvo statement said.

For the first half of 2009, Volvo posted a loss of 9.78 billion Swedish Kronor, while it had an income of 9.36 billion Swedish Kronor in the year earlier.

The company registered a net sales of 110.08 billion Swedish Kronor in the January to June quarter of 2009 as against 156.86 billion Swedish kronor in the previous year.

During the second quarter, liquidity position strengthened to 63.5 billion Swedish Kronor.

Out of the total there were liquid assets of 32.5 billion Swedish Kronor and unutilized credit facilities of 31 billion Swedish Kronor.