Skip to main content

Volvo Construction Equipment remains upbeat despite 2015 sales dip

Volvo Construction Equipment saw market share and underlying earnings improve in the final quarter of 2015. The company said that improved underlying earnings and more market share of the important larger machine segments were insufficient to offset a declining total market in Volvo Construction Equipment’s final quarter 2015 results. Sales were down 11% in the period. For full year 2015, sales at the company dipped by 3%. In the fourth quarter of 2015 Volvo CE reported that net sales decreased by
February 5, 2016 Read time: 2 mins
Martin Weissburg, president of Volvo Construction Equipment
7659 Volvo Construction Equipment saw market share and underlying earnings improve in the final quarter of 2015

The company said that improved underlying earnings and more market share of the important larger machine segments were insufficient to offset a declining total market in Volvo Construction Equipment’s final quarter 2015 results. Sales were down 11% in the period.

For full year 2015, sales at the company dipped by 3%.

In the fourth quarter of 2015 Volvo CE reported that net sales decreased by 11% to €1,164 million, down from €1,304 million in the same period 2014.

The company said the figures were due to further large declines in China and Brazil, coupled with headwinds in many markets outside of North America, which also showed signs of cooling.

Operating income almost doubled, at €222.09 million, up from €130.82 million in 2014. Operating income, excluding restructuring charges, during the final period of the year resulted in a loss of €20.23 million, a considerable improvement compared to the loss of €86.57 million in the same period of the previous year.

Operating margin also showed signs of progress, at negative 1.7% for the period – up from a negative 6.6% in Q4 2014. Operating margin was positive for the full year, at 4.1%, up from 2.3% in the same period the year before. These relatively encouraging developments were achieved despite lower sales volumes, low capacity utilization and a credit provision in China of nearly €17 million.

“Despite lower sales, our operating results improved, and were much better than in the same period in 2014,” said Martin Weissburg, president of Volvo Construction Equipment.

“We took market share in larger, more profitable machine segments, completed the exit of backhoes, graders and milling machines and strengthened a new governance structure that allows us to make clear, informed decisions,” he said.

“This shows that the activities of the Volvo, 5316 SDLG and 8081 Terex Trucks teams to drive our transformation as Volvo CE globally are working.”

Volvo Group is based in Göteborg, Sweden, and employs around 100,000 people worldwide. It has production facilities in 19 countries selling into more than 190 markets. Sales in 2014 were €31 billion.

For more information on companies in this article

Related Content

  • Cat sees reason for global equipment growth
    March 5, 2014
    Caterpillar ceo Doug Oberhelman is cautiously optimistic that recovery in the global equipment market will continue throughout 2014. Speaking at Conexpo, Mr Oberhelman said that the company was in the best possible position to make the most of steadily growing demand, with a host of improved machines and technologies on show. “The North American market is showing the best growth signs in March that we’ve seen for four years,” he said. “This year the market is stronger, housing is better and we see a very
  • Morocco extraction site service capability
    July 15, 2016
    Phosphate extraction is carried out on a huge scale in Morocco in harsh, hot and often remote locations. Servicing this equipment is no easy task given the conditions, with special machines having to be used Phosphate is in high demand. It is used in fertilizer, detergent and food additives. However its fastest growing market is in the manufacturing of lithium-ion batteries, now being used widely for commercial goods as well as electric vehicles. As Morocco is the world's third-largest producer of phosphate
  • Improving road safety for Spain
    February 1, 2013
    Spain continues to lower its road fatality rate, with 2012 being the 9th consecutive year in which crash-related deaths have been reduced. There were 1,304 fatalities on Spain’s roads during 2012, a drop of 180 compared with the previous year. The number of accidents involving pedestrians has also been reduced although the number of accidents involving motorcyclists was similar to the previous year. Of concern is that the fact that cyclist fatalities increased. Of those vehicle occupants killed, 22% were no
  • 50th anniversary celebration for Komatsu’s Italian facility
    January 21, 2014
    Komatsu’s utility equipment operation in Italy recently held its 50th anniversary celebration, as well as highlighting new product developments. The current plant was established by the Italian firm FAI in the town of Este around 30 years ago, close to the city of Venice. When rules on importation of machine into Europe were established in the late 1980s, Komatsu discussed a partnership with FAI. This was established in 1988, later buying out the majority share in the plant held the Italian founder in the e