STOCKHOLM (AP) — Swedish truck and bus maker AB Volvo onWednesday said sliding sales, weak foreign
exchange rates and costsrelated to the rollout of new products resulted in net profit falling bymore than
half in the second quarter.The company said net profitfor April-June period was 2 billion Swedish kronor
($309 million),compared to 4.9 billion kronor last year. Total sales dropped by 12percent to 72.7 billion
kronor from 82.9 billion in 2012. Compared withthe first quarter this year, sales increased by 25
percent.Theresult was better than analysts had expected and the Volvo share rose by3.7 percent to 96.7
kronor on the Stockholm stock exchange.VolvoCEO Olof Persson said global demand for trucks was
"relatively stable"except in Brazil where demand "continued to develop strongly" and
Indiawhere the market is "considerably tougher."Sales by Volvo’s truckdivision dropped by 8
percent while its sales of construction equipmentfell by 19 percent and bus sales were down 20
percent.Internationaldemand for construction equipment remained weak, although "the declinein the key
Chinese market slowed and demand stabilized at a lowerlevel," Persson said.He said the bus market
remained tough, with "significant pressure on prices."Inthe second quarter, Volvo introduced an
all-new product range for itsRenault Trucks brand, as well as a number of new Volvo trucks and therollout of
new products will continue in the third quarter."Inthe short-term, this impacts profitability since
costs will continue tobe high at the same time as we have the usual vacation shutdowns in thethird quarter.
However, once the new truck generations are out in themarkets they will contribute to ensuring the group’s
organic growth andcompetitiveness going forward," Persson said.Copyright 2013 The Associated Press.