Engine manufacturer Volvo Penta reported a decrease in sales for the third quarter, but overall saw an increase in profits because of cost reductions.
"Volvo Penta has also been impacted by a continued weak market, with a slightly more stable trend in industrial engines than in marine engines. In spite of the 32 percent decline in sales adjusted for currency, Volvo Penta reported a profit for the quarter as an effect of cost reductions," the company said in a statement.
In its report, the company cited a weak demand for marine engines but a more stable environment for industrial engines. It also touted increased market share for Volvo Penta IPS, the manufacturer's pod drive propulsion system.
"Although the third quarter remained, as expected, challenging in terms of profitability, there are some positive signs indicating that the decline in demand has bottomed out and that we are now beginning a gradual recovery," CEO Leif Johansson said in a statement.
"These signs are the most obvious in the group's second largest region in terms of sales, Asia, where the economic growth is also reflected in demand for the Group's products," he added.
The third quarter operating loss was significantly reduced compared to the second quarter as a result of cost-cutting measures. The operating loss amounted to SEK 3,286 M ($484,048) compared to an operating loss of SEK 6,883 M ($1.01 million) in the second quarter of 2009. In the third quarter of 2008 the operating income was SEK 3,177 M ($468,033).