Volvo, the Swedish automobile manufacturer, is set to announce its fourth quarter results on Friday. Analysts are predicting a net profit of 12.65 billion Swedish kronor ($1.21 billion) for the quarter, compared to SEK6.69 billion in the same period last year. The previous year's earnings were impacted by a SEK630 million cost related to claims resulting from a European Commission antitrust settlement decision.
Sales are expected to increase to SEK136.3 billion, up from SEK134.3 billion, according to a FactSet poll. Over the past year, Volvo's shares have risen by approximately 32%, and they are currently trading at SEK249.10.
Key points to keep an eye on include the projected decline of about 25% in fourth-quarter truck orders as market conditions return to normal levels. Analyst Mats Liss from Kepler Cheuvreux made this observation in a note. Additionally, Citi expects Volvo to suggest a dividend of SEK15.5 per share, an increase from SEK14 last year. However, this figure may disappoint some observers who had anticipated SEK20 per share, as stated by analyst Klas Bergelind.
Volvo has stated that it foresees the European and North American heavy-duty truck markets in 2024 to be at 290,000 and 700,000 vehicles respectively. Brazil is expected to have 80,000 vehicles, while India is projected to reach 440,000. Citi does not anticipate any significant changes to Volvo's market outlook.