Truck-maker Volvo steps up costs cuts after an unexpected profit rise in the third quarter. Axel Threlfall reports.
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SOUNDBITE: Axel Threlfall, Reuters, saying (English):
''VOLVO surprising to the upside in Q3 and the market liked it ... a lot.
Up 11% at the open .... now 10.3 per cent. The truck maker did well in North America, but Europe is still weak, as expected given the economy and new green engine rules, prompting the company to forecast a flat 2015 in the region.
In fact, Europe, Japan and China all expected to be flat next year, Brazil even a bit lower, while the US and India are expecting an uplift.
Volvo also said its stepping up cost cuts in its quest to boost profitability - the company planning to cut an additional three and a half billion crowns of structural costs by the
end of next year, bringing full year savings to 10 billion in 2016..
But it does look like the markets were a little wrong footed, hence the sharp share price move this morning.''
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