Stockholm  - Swedish heavy-vehicle maker Volvo on Tuesday posted a second-quarter pre-tax loss of 7,7 billion kroner (993 million dollars) due to continued weak demand in its main markets.

In the corresponding business period last year, the Volvo Group, which does not include the Ford-owned car division, posted pre-tax income of 7.4 billion kronor.

Net sales in the 2009 second quarter declined 33 per cent to 53.9 billion kronor, resulting in a net loss of 5.5 billion kronor for the quarter.

"During the second quarter, weak demand continued in essentially all of the Volvo Group's markets," Volvo chief executive Leif Johansson said in a comment.

Volvo's truck business remained "weak" in key markets Europe, North America and Japan, Johansson said, noting that there were signs "the decline in demand has started to level off and that the markets have stabilized."

The group's outlook remained that "the total European market for heavy trucks will be at least halved in 2009 compared with 2008 and that the North American market will decline by 30-40 per cent."

Volvo planned continued measures to avoid building up inventory.

Second-quarter order bookings for trucks declined 51 per cent year-on-year to 26,624 units, with the European market falling 59 per cent, Volvo said.

Truck deliveries dropped 57 per cent year-on-year to 29,651 units with lower demand in all major markets.

The bus division sold 4,676 units, up 9 per cent year-on-year, while order bookings increased by 38 per cent.

The Volvo Group sells trucks and heavy vehicles, buses and construction machinery, and includes the divisions Volvo Aero and Volvo Penta.

At the end of June, the Volvo Group had some 94,000 employees worldwide, compared with 101,381 at year-end 2008. (dpa)