STOCKHOLM, Nov 21 (Reuters) - Truck and construction equipment maker Volvo said on Friday its operating profit in the fourth quarter would be negatively impacted by around 650 million Swedish crowns ($88 million) due to expected credit losses in China.
"Following an extended period of declining demand, low machine utilization and lower raw materials prices, profitability for customers and dealers primarily in the Chinese mining industry has declined and their financial position has weakened," Volvo said in a statement.
"The risk for future credit losses has therefore increased and as a consequence Volvo Construction Equipment is provisioning 650 million in the fourth quarter of 2014". (1 US dollar = 7.3888 Swedish crown) (Reporting by Johannes Hellstrom, editing by Daniel Dickson)