By Dominic Chopping


STOCKHOLM--Volvo AB on Thursday posted lower-than-expected fourth-quarter earnings as truck demand remained strong in Europe and North America but costs rose sharply and the company booked a write-off of Russian tax assets.

The Swedish truck maker reported net profit of 6.62 billion Swedish kronor ($648.5 million) compared with SEK8.0 billion a year earlier, missing a FactSet consensus forecast of SEK9.05 billion.

Sales rose to SEK134.3 billion, beating a forecast of SEK120.71 billion.

Truck deliveries rose 4.1% in the quarter, while order intake fell 21%, the company said.

"The situation in the global supply chain for components is still unstable, characterized by disruptions and unpredictability," Chief Executive Martin Lundstedt said.

"Higher input costs, in particular energy prices, are putting our supplier base under financial pressure. We will therefore continue to have disturbances, stoppages and extra costs in the production of trucks and in other parts of the group."

Volvo trucks continued to gain market share in most markets, but to manage order books and cost inflation it has continued to be restrictive in slotting orders for production, the company said.

Volvo backed its 2023 truck market forecasts for all regions.

The company proposed an ordinary dividend of SEK7.00 a share and an extra dividend of SEK7.00 a share.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

01-26-23 0230ET