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Volvo profit lags forecast, says to cut 4,400 jobs

Volvo
Daniel Roland | AFP | Getty Images

World number two truck maker Volvo posted a smaller-than-expected rise in fourth-quarter core earnings, dented by currency headwinds and lingering costs for launching new models, and unveiled plans to cut 4,400 jobs in its quest to boost profits.

(Read more: Volvo chief says company returned to profitability in 2013)

However, order bookings at the group held up surprisingly well despite a slowdown in Europe as activity shot up in North America.

Volvo, competing for market leadership with Germany's Daimler said operating earnings excluding restructuring charges rose to 3.08 billion Swedish crowns ($471.65 million) from a year-ago 2.19 billion, below a forecast 3.80 billion in a Reuters poll of analysts.

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