Industrial Vehicle Technology InternationalIndustrial Vehicle Technology International
  • News
    • A-D
      • Agriculture
      • Autonomous Vehicles
      • Awards & Events
      • Connectivity
      • Construction
      • Covid-19
    • E-F
      • Electric & Hybrid Vehicles
      • Electronics
      • Engines
      • Ergonomics
      • Exhibitions
      • Fluid Power
      • Forestry
    • G-N
      • Machine Control
      • Market Performance
      • Materials Handling
      • Mergers & Acquisitions
      • Mining & Quarrying
    • P-Z
      • Personnel
      • Powertrain
      • Regulations
      • Safety
      • Specialist Machines
      • Technology & Concepts
      • Vehicle Development
  • Features
    • Features
    • Opinion
  • Online Magazines
    • iVT All Editions
    • iVT Quarterly
    • iVT Off-Highway Annual
    • iVT China
    • Advanced Lift Truck
    • iVT Archive
    • Subscribe Free!
  • Webinars
  • Videos
  • iVT Podcast
  • Events
LinkedIn YouTube Twitter
LinkedIn YouTube Twitter
Subscribe
Industrial Vehicle Technology InternationalIndustrial Vehicle Technology International
  • News
      • Agriculture
      • Autonomous Vehicles
      • Awards & Events
      • Connectivity
      • Construction
      • Covid-19
      • Electric & Hybrid Vehicles
      • Electronics
      • Engines
      • Ergonomics
      • Exhibitions
      • Fluid Power
      • Forestry
      • Machine Control
      • Market Performance
      • Materials Handling
      • Mergers & Acquisitions
      • Mining & Quarrying
      • Personnel
      • Powertrain
      • Regulations
      • Safety
      • Specialist Machines
      • Technology & Concepts
      • Vehicle Development
  • Features
    • Features
    • Opinion
  • Online Magazines
    1. iVT All Editions
    2. iVT Quarterly
    3. iVT Off-Highway Annual
    4. iVT China
    5. Advanced Lift Truck
    6. iVT Archive
    7. Subscribe Free!
    Featured
    2nd August 2023

    In this Issue – August 2023

    iVT By Tom Stone
    Recent

    In this Issue – August 2023

    2nd August 2023

    In this Issue – June 2023

    9th June 2023

    In this Issue – February 2023

    15th February 2023
  • Webinars
  • Videos
  • iVT Podcast
  • Events
LinkedIn YouTube Twitter
Industrial Vehicle Technology InternationalIndustrial Vehicle Technology International
Market Performance

Sales slip 17% in Volvo’s first quarter

Saul WordsworthBy Saul Wordsworth23rd April 20202 Mins Read
Share LinkedIn Twitter Facebook Email

The rapid deterioration of global demand caused by measures in society to contain the spread of the Coronavirus had a negative impact on Volvo Construction Equipment’s (Volvo CE) first quarter 2020 financial results, with sales, profitability, deliveries and orders all showing reversals during the period.

During the first three months of 2020 Volvo CE saw net sales decrease by 17% to SEK 20,148 M (SEK 24,155 M in Q1 2019). At SEK 2,678 M operating income also slipped, down from SEK 3,646 M in the same period of 2019. Earnings were impacted by lower machine volumes and an unfavourable machine mix. This was reflected in the operating margin, which at 13.3% was slightly down on the 15.1% in the same period the year before.

Order intake decreased by 7% in Q1 2020, although demand in China – the world’s biggest market for construction equipment – increased towards the end of the quarter. Deliveries were down, by 13%, to 20,170 machines, compared to 23,139 machines in Q1 2019.

The major global construction equipment markets of Europe and North America were both down in the first quarter, declining 1% and 2% respectively in the first two months of the year. In Asia (not including China) demand was down by 4% compared to the same period last year. The impact of the Covid-19 virus was more pronounced in China, which fell 44% during the period, due to market disruption. China did see a rebound in March, with demand up 2% compared to the same month in 2019, thanks to government stimulus measures aimed at boosting infrastructure development.

“The measures to stop the spread of the Covid-19 pandemic began affecting our operations in China in February, and had a severe impact in mid-March, when our global supply chain was disrupted and production halted in most parts of our operations,” commented Volvo CE’s president Melker Jernberg. “It is clear that we are now entering a tough period, with both production stops and low demand having a negative impact on our profitability. That said, we take confidence in the fact that our customers are active in businesses that are important to society, and that our products and services are vital in building sustainable infrastructure for the future.”

Table 1. Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona

volvo-ce_april-2020_q1-financial-results
Share. Twitter LinkedIn Facebook Email
Previous ArticleSulky re-starts production after shutdown
Next Article New battery-powered bulldozer concept revealed
Saul Wordsworth

Saul Wordsworth is deputy editor of the iVT brand - which includes digital and print editions of a quarterly magazine and Off-Highway Annual, as well as ivtinternational.com. He is a keen cyclist and lives in north London.

Related Posts

Market Performance

Konecranes posts strong half-year results

11th August 20232 Mins Read
Market Performance

Cummins reports strong Q2 results

11th August 20233 Mins Read
Market Performance

Wacker Neuson on growth track in first half of 2023

9th August 20233 Mins Read
Latest News

UFI Filters releases blow-by technology for new Cursor 16 TST engines

28th September 2023

Sibo introduces jolly bushings to help reduce machine downtime

28th September 2023

Cummins promotes hydrogen at Utility Expo

28th September 2023

Get the 'best of the week' from iVTInternational.com direct to your inbox every Friday


Supplier Spotlight
  • Ventac Group
Our Social Channels
  • Twitter
  • YouTube
  • LinkedIn
Getting in Touch
  • Contact Us / Advertise
  • Print Media Pack
  • Digital Media Pack
  • Meet the Team
  • Free Weekly News Email!
Related Topics
  • Electric & Hybrid Vehicle
  • Farmers Weekly
  • The Engineer
  • Traffic Technology Today
  • Vehicle Dynamics
© 2023 Mark Allen Group Ltd | All Rights Reserved
  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.