Volvo Construction Equipment has reported a 36% increase in Q2 2017 sales compared to the same period last year, as the company produces its 75,000th hauler.
The strong second quarter figures have been put down to the result of growing demand in most major markets and a new internal policy of controlling costs as volumes return.
Net sales grew by more than a third to Skr18.5bn (US$2.2bn), a 36% rise on like-for-like figures compared with the same period in the previous 12 months. Operating income also rose three times more than what was reported in 2016, equating to an operating margin of 13.3%.
“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 company also announced that its 75,000th articulated hauler had recently gone into production; Volvo CE has produced over half of all haulers ever made, with 50,000 vehicles still in use worldwide today.
One of the A45G full suspension models rolled off the production line last month at the same factory in Braas, Sweden, where the first machine the DDR631 was made 50 years ago.
“There’s not many companies can say that they are still the market leaders half a century after they invented a concept,” said Håkan Ask, business platform leader for Trucks at Volvo CE. “Having made 75,000 machines we are still showing the way, building more productive and fuel-efficient machines that are the envy of the industry.”
July 21, 2017