0846 GMT [Dow Jones] Volvo (VOLVY) -7.7% to SEK349 after 4Q profit undershoots consensus estimates by far, and the truck maker provides no comments on its strategy for surplus capital.
Volvo blames profit drop on SEK500M costs for product launches. "But there is still a difference of a few hundred million in higher costs (at the truck division) that they have to explain," says Handelsbanken's Carl Holmquist. However, "I can't see that 2006 will be a bad year for Volvo." Says reason for unchanged forecast on European truck market '06 may be caution ahead of the introduction of new emission standards on October 1. (MAK)
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(END) Dow Jones Newswires
February 03, 2006 03:46 ET (08:46 GMT)