Market share gains in key international markets have seen a strong performance for Volvo Construction Equipment (CE) in the third quarter of 2017.
Growth in Asia and improved sales figures in Russia have been instrumental in the company posting a 34% rise in overall sales, 45% rise in order intakes, and deliveries up by 48% in the months of July, August and September this year.
Adjusted for currency movements, net sales in the third quarter increased by 34% to Skr15bn (US$1.8bn). Operating income was also strongly up, jumping 237% to Skr2bn (US$247m), up from Skr601m (US$73m) in the corresponding period in 2016. This represented a significant step up in operating margin, to 13.4% (5.2%). Profitability was positively affected by higher sales, improved capacity utilization in the industrial system and again from the sale of Volvo CE’s dealership in the UK.
“This is an especially strong performance. Volvo CE has responded well to the growing demand, with volume increases up 48%, while at the same time taking a significant step up in profitability,” said Martin Weissburg, president of Volvo Construction Equipment. “We also continue to gain market share within our product and market strongholds.”
Around the world
Up to the end of August, the European market was up 15%, driven by the growth in the UK, France and Italy. The German market is slightly above last year, while the recovering Russian market is up 101%. North America is 7% above last year, due to growth in demand for excavators, both compact and larger general-purpose machines.
The South American market is 6% above last year but remains at very low levels. In Asia (excluding China) the total market is 12% above last year, with continued growth in India and Indonesia, helped by a recovering mining sector. The Chinese market is 74% above last year, with strong recoveries in both excavators and large wheel loaders.
October 27, 2017