Volvo CE sees sales rise by over a third in Q2 2017
Increasing demand in key markets helps boost Volvo CE in Q2 2017, with significant improvements in both sales and earnings, thanks to the maintenance of tight controls on costs even as volumes return
Volvo Construction Equipment (CE) has reported that its net sales in the second quarter of 2017 increased by 36% to $2.23bn (SEK 18.5bn) – up from $1.64bn (SEK 13.6bn) in Q2 2016.
Operating income also more than tripled, reaching $296m (SEK 2,460m) for the period – compared to the operating income of $97.5m (SEK 810m) in Q2 2016 – for an operating margin of 13.3% for the quarter.
The second quarter also saw order intake increase by 54%, while deliveries in the period were up 49%, at 17,472 machines. Order intake in China was particularly strong, rising by 221%, driven by increased demand for SDLG wheel loaders and SDLG and Volvo excavators.
“Demand for construction equipment continues to improve in Europe and China, and also a clear recovery in the mining segment in many parts of the world,” said Martin Weissburg, president of Volvo CE.
“Thanks to Volvo CE keeping tight control over costs as volumes return, these increased sales have resulted in a significant improvement in profitability.
“In general, Volvo CE has competitive products and services, with good positions in key markets. We will continue to focus on core products and segments, continuous improvement, lowering costs and improving quality.”
The second quarter of 2017 saw increased demand in most major markets. Europe was up 14%, while North and South America both saw a 4% improvement.
Asia (excluding China) was up 8%, while the Chinese market was up almost two thirds, at 65%.
The positive results come after Volvo CE sales grew by 30% in the first quarter of 2017, which the manufacturer attributed to improving market conditions and the positive impact of an internal transformation programme.