Volvo's operating earnings for the fourth quarter tumbled 84 per cent to 1.12bn kronor, where consensus had been looking for 2.19bn.

The truck maker also noted that weak orders at the end of 2012 complicated the outlook for the first three months of this year.

"The first quarter will also be difficult as a result of the low order intake in many markets during the fourth quarter of 2012. Profitability will be affected by low capacity utilisation, high spending levels in research and development and costs associated with the launch of new products," said chief executive Olof Persson.

Nevertheless, Persson did note that he expects a gradual improvement in 2013 as "economic growth across the world gains momentum".

After closing yesterday with a 0.43% gain, Volvo will start Wednesday's session from 92.95 kronors.

JM

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