STOCKHOLM, Jan 28 (Reuters) - Swedish truckmaker Volvo Group reported a smaller-than-forecast decline in fourth-quarter operating profit on Wednesday, but cut its overall annual dividend payment by more
than expected.
Profits at the Swedish group continue to tumble as the sector grapples with a more than three‑year slump in the United States amid policy and tariff uncertainty with lower freight volumes.
Operating profit for the October-December period was 12.77 billion Swedish crowns ($1.45 billion) against a year-earlier 14.04 billion and a mean forecast in an LSEG poll of analysts of 11.49 billion.
Volvo proposed an ordinary dividend of 8.50 crowns per share for 2025, compared with 8.0 crowns for 2024, and an extra dividend of 4.50 crowns, versus 10.50 crowns, amounting to a total payout of 13 crowns. Analysts polled by LSEG had on average forecast a total dividend of 14.50 crowns.
Volvo said it now predicts that the North American heavy truck market will be roughly flat compared to last year at 265,000 units rather than the slightly weaker forecast of 250,000 made in October.
For the European heavy truck market it hiked its October forecast to 305,000 units from the earlier 295,000.
"Over the last couple of months we have seen a stabilisation in several of our markets and in some cases even a slight improvement," CEO Martin Lundstedt said in a statement.
"However, there are uncertainties, not least when it comes to geopolitical developments, which could impact demand going forward," he said.
($1 = 8.8028 Swedish crowns)
(Reporting by Marie Mannes; Editing by Terje Solsvik and Tom Hogue)
