Volvo swings to a loss, cuts truck-sales target

Volvo AB swung to a first-quarter loss and signaled it doesn't expect a turnaround in the near future, in further signs that the economic downturn continues to hit the auto industry hard.

The truck maker reduced its forecast for heavy-duty truck sales in both Europe and North America, citing weak demand.

Volvo posted a net loss of 4.23 billion Swedish kronor ($521.6 million), compared with a year-earlier net profit of 4.2 billion kronor. Revenue fell 27% to 56.12 billion kronor.

"Demand weakened sharply in all markets during the first quarter," Chief Executive Leif Johansson said.

Volvo said the net order intake, which takes into account cancellations, plunged 65% from the first quarter of 2008. In Asia, Volvo's second-biggest market after Europe, net orders fell 70% to 5,712 trucks.