Volvo CE achieve best ever Q1 sales

Volvo CE has reported record first quarter year sales. Sales between January 1 and March 31, 2012 were up 17% on the same three months of 2011. Despite a 26% decline in the overall construction machine sales market in China during the first quarter of this year, Volvo CE says it maintained sales in the country and reinforced what the company claims is its number one position in the Chinese wheel loader and excavator market together with its joint-venture partner, SDLG. Volvo CE says it achieved a 111% incre
April 27, 2012 Read time: 2 mins
359 Volvo CE has reported record first quarter year sales.

Sales between January 1 and March 31, 2012 were up 17% on the same three months of 2011.

Despite a 26% decline in the overall construction machine sales market in China during the first quarter of this year, Volvo CE says it maintained sales in the country and reinforced what the company claims is its number one position in the Chinese wheel loader and excavator market together with its joint-venture partner, 5316 SDLG. Volvo CE says it achieved a 111% increase in sales in North America in the first three months of 2012.

Volvo CE also posted new record Q1 operating income and operating margin figures. The company saw a 21% increase in operating income to US$316.6million (SEK 2.13billion), and an operating margin of 11.8%, up from 11.4% in the same period last year. Both measures of profitability are records for the company in a first quarter, and are attributable to sales price realization, currency effects and internal cost reductions.

The value of Volvo CE’s order book on 31st March 2012 is also said by the company to be 35% higher than the same stage of the previous year.

“The strong sales growth and high profitability is a combination of growth in all regions, especially in North America, and our success in achieving sales and profitability is on a par with the preceding year in China, despite the significant weakening of that market,” says Volvo CE’s President Pat Olney. “Our success in China was due to our continued ability to capture market share, thanks to a strong product portfolio and our efforts to establish stable distribution channels.”

Between January 1 and March 31 this year, Volvo CE opened a new plant in Linyi, China, that will make SDLG branded equipment. Meanwhile in Bangalore, India, a new factory was inaugurated to make Volvo excavators, alongside the existing road machinery products already produced at the facility.

For more information on companies in this article

Related Content

  • Wacker Neuson record slight revenue drop in Q1 2013
    May 22, 2013
    The Wacker Neuson Group reported a slight drop in revenue and earnings for the first quarter of 2013 compared to the same three months of last year. The German construction equipment manufacturer says that a weak European economy was one of the main factors that dampened demand for light and compact construction equipment in Q1 2013. In addition, the Group’s strong performance in first quarter of 2012 is said to have resulted in an above-average baseline for comparison. At US$331.26 million (€257.1mn), Grou
    Read More
  • Deutz new orders worth down 16.4% in 2012 to €1.237.1 billion
    March 19, 2013
    German engine manufacturing giant Deutz saw the worth of its new orders fall 16.4% in 2012 to €1.237.1 billion, compared to 2011 new orders worth €1.479.3 billion. The Cologne-based firm sold almost 179,000 engines in 2012 - 22.5% fewer than in the previous year. The Deutz Group's revenue decreased by 15.5% to €1.291.9 billion in 2012. Average revenue per engine increased owing to the greater proportion of higher-value engines. Deutz said the difficult economic climate in Europe and a weakening capital equi
    Read More
  • Volvo Group opens SDLG excavator factory in Brazil
    August 9, 2013
    Production has started in Brazil of excavators from Shandong Lingong Construction Machinery (Lingong). The SDLG-branded machines will be built in a US$10 million purpose-built assembly hall within the Volvo Group site in Pederneiras, São Paulo state. Initially, four SDLG crawler excavator models will be produced at the new facility – the LG6150E, LG6210E, LG6225E and LG6250E models, covering weight classes from 13.8tonnes to 24.3tonnes. The excavators will be sold to companies working in a variety of indust
    Read More
  • Volvo CE is moving production of backhoe loaders and graders
    November 13, 2014
    Volvo CE has announced it is moving production of its backhoe loaders and motor graders to its Chinese SDLG operation. The move is being made as part of a larger reorganisation, intended to boost overall profitability. Cost-saving measures are being implemented by Volvo CE to address the profitability of certain products. And the firm is opting to discontinue product development and production of backhoe loaders and motor graders in Europe and Americas and transfer these operations to its Chinese company
    Read More

Highlighted Content