(Reuters) -Swedish truckmaker Volvo reported a third-quarter operating profit in line with market expectations on Friday, even as weaker demand in North and South America weighed on the results.

Volvo's adjusted operating profit fell to 11.7 billion Swedish crowns ($1.2 billion) in the quarter, from 14.1 billion crowns a year earlier, which matched the average forecast in an LSEG poll of analysts.

The Gothenburg-based group, which also makes construction equipment and engines, lowered its outlook for the North American truck market while keeping its European view unchanged.

It now expects heavy truck deliveries of around 290,000 vehicles in Europe and 265,000 in North America in 2025, signalling softer demand expectations for the U.S. market.

The company said the North American long-haul freight market remains in recession, with lower freight volumes and prices, while customers are holding back orders amid uncertainty over new emissions rules and tariffs.

In Europe, truck demand is largely replacement-driven, supported by stable fleet utilisation, Volvo added.

U.S. President Donald Trump's move to slap a 25% tariff on imported heavy trucks deepens trade uncertainty across North America, even though the USMCA trade agreement still shields most manufacturers from fresh duties.

Volvo group is best positioned among European truckmakers to weather the trade barriers, because it builds all trucks destined for the U.S. market domestically, along with most of its components.

($1 = 9.4074 Swedish crowns)