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Volvo May Deliveries Down On Weak Europe, Despite Growth In North America

Swedish automaker AB Volvo (VOLVY.PK) on Monday reported a decline in truck deliveries for the month of May as strong growth in North America was more than offset by weak results in Europe, South America and Asia regions.

Looking ahead, Volvo noted that it is evaluating if the announced increases in Volvo branded trucks production rates will be implemented as planned due to the current economic development in Europe.

Total deliveries from truck operations in May decreased 3 percent to 19,734 vehicles from 20,258 vehicles in the year-earlier period.

Deliveries to Europe fell 17 percent as a growth in Eastern Europe was more than offset by double-digit decline in Western Europe, which was affected by the economic downturn.

Eastern Europe was benefited by Russia, where the economic growth is continuously strong and the expansion of the infrastructure increases the construction-related demand.

Vehicle sales in North America climbed 31 percent, while that of South America fell 19 percent and Asia sales edged down 1 percent. In other markets, vehicle deliveries climbed 32 percent.

In May, light duty vehicle sales plunged 37 percent, while medium duty deliveries grew 12 percent and heavy duty vehicles remained flat.

Deliveries of Volvo branded trucks slid 9 percent in May. Deliveries for Mack branded trucks climbed 59 percent as the construction-related demand is beginning to show modest signs of recovery- mainly in North America, and Mack continues to improve share in regional highway segments.

In May, Renault branded trucks' deliveries declined 18 percent mainly due to lower deliveries of light-duty trucks. Deliveries of Eicher branded trucks decreased 8 percent.

UD branded trucks' sales grew 44 percent mainly as strong performance in Japan and Indonesia boosted deliveries to Asia. In Japan, last year's deliveries were negatively affected by the disruption of parts supply caused by the earthquake disaster.

In Stockholm, Volvo shares are currently trading at 77.30 Swedish kroner, up 0.30 kroner or 0.39 percent.

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