Stockholm - Swedish heavy-vehicle maker Volvo on Friday reported a pre-tax loss of 2.5 billion kronor (303 million dollars) for the fourth quarter of 2008, a quarter when truck orders plunged 82 per cent.

In the corresponding business period of 2007, the Volvo group, which does not include the Ford-owned car division, posted pre-tax income of 5.6 billion kronor.

Net sales declined 9 per cent to 76.9 billion kronor, while net income fell from 4.1 billion kronor to 1.3 billion kronor.

For full-year 2008 sales increased 6 per cent to 303 billion kronor while pre-tax income declined 35 per cent to 14 billion kronor.

Fourth-quarter order bookings for trucks dived year-on-year from 76,417 to 13,678 units, Volvo said.

Truck deliveries declined 22 per cent year-on-year to 59,528 units with lower demand in all major markets except Asia where the Middle East pushed sales.

Trends for 2009 were "difficult" to judge but "we do not expect a recovery in demand during the first half-year," said Volvo chief executive Leif Johansson.

The board proposed a dividend of 2.00 kronor per share, down 64 per cent year-on-year.

The bus division sold 3,080 units, down 10 per cent on fourth quarter 2007, Volvo said, adding that order bookings fell by 18 per cent.

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

The construction-machinery division was hit by lower activity in the housing and construction sector and has introduced stop days.

At the year-end, the Volvo Group had 101,381 employees, compared with 101,698 at year-end 2007. During 2008 and 2009 the group was to reduce its workforce and consultants by 16,255 people. (dpa)