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

  • Compact equipment leads the way to record results for Wacker Neuson
    August 4, 2015
    Light and compact equipment maker Wacker Neuson Group, based in Munich, Germany, reported record revenue and earnings for the first half of 2015. Revenue for the first six months of 2015 increased 14% relative to the same period 2014, reaching €706.4 million, a record high, the company said in a written statement. “Our business grew significantly, despite negative market developments in many countries, especially outside of the US and Europe,” said Cem Peksaglam, chief executive of Wacker Neuson.
    Read More
  • Engine maker Deutz dumps full-year 2015 forecast amid poor trading
    September 16, 2015
    German engine maker Deutz Group said it will not meet its forecast for the current financial year. A sluggish second quarter with “very low” new orders means revenue is expected to fall by around 20% compared with the forecasted 10% drop, according to a corporate statement. “Consequently, the second half of 2015 will be significantly worse than the first half of the year,” the statement said. “Given the low level of business, Deutz will only be just about break even in terms of EBIT this year. Unt
    Read More
  • Wacker Neuson reports strong growth for 2022
    March 29, 2023
    Wacker Neuson is reporting strong growth for 2022.
    Read More
  • Volvo CE is investing in its research and development
    May 20, 2014
    Volvo Construction Equipment has started work on its new test and development centre in Hapcheon, Korea. The facility lies close to the company’s existing excavator manufacturing facility in Changwon. The new facility doubles as Volvo CE’s excavator testing capacity in Korea and includes an all-weather test dome, reliability and noise test field, workshops, various complete machine performance test areas and a customer clinic. Engineers at the 253,515m2 site will focus on excavator product development, adva
    Read More

Highlighted Content