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Truck firm Volvo expects 440 million SEK Q3 charge after U.S court ruling

STOCKHOLM (Reuters) - AB Volvo said at the weekend it expected a 440 million Swedish crown ($64.35 million) hit to operating income in the third quarter after a U.S. court upheld a fine over emissions rules compliance.

Volvo said the U.S. Court of Appeals for the District of Columbia Circuit ruled it must pay penalties and interest of approximately 508 million crowns related to the emissions compliance of some Volvo Penta diesel engines.

"Volvo will now review the ruling in detail, and consider whether to appeal or not," the company said in a statement.

Volvo said it had previously made a provision of around 68 million crowns related to the dispute and had booked approximately 422 million as a contingent liability.

Last week, Sweden's Volvo posted core earnings well below expectations for the second quarter, hurt by slow demand for European trucks and a weakening market for construction equipment in China. ($1 = 6.8373 Swedish Crowns)

(Reporting by Simon Johnson; Editing by Tom Heneghan)

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