Volvo, Swedish truck maker, which is one of the world’s largest, has reported at 23 per cent drop in its third-quarter net profit but said the impact of the Covid-19 pandemic is easing.

The company said on Friday that net profit for the period came in at 5.72 billion Swedish kronor ($646 million, 550 million euros), compared to 7.46 billion in the previous year.

While restrictions owing to the novel covid-19 have severely impacted sales, CEO Martin Lundstedt noted that “towards the end of the quarter transport activity was back on roughly the same level as a year ago in most markets.”

“After the easing of COVID-19 restrictions, freight activity has increased and customers are returning to previously planned replacement cycles,” Lundstedt said in a statement.

When compared to a year earlier, sales for the group fell by 22 per cent to 76.9 billion kronor, led by a 26 per cent drop in truck sales, for the period July to September.

Lundstedt also noted that uncertainty about future developments was “considerable as an increase in the spread of Covid-19 can lead to new restrictions on societies and businesses.”