Q2 sales down but market share up for Volvo Construction Europe

Volvo Construction Equipment reports share growth as overall market declines in Q2. Lower demand in most markets outside Europe weighed on Volvo CE’s second quarter 2016 revenue. But this was partially offset by gains in market share in the heavy equipment segment, according to a written statement from the Swedish manufacturer. Adjusted for currency movements, Volvo CE reported net sales down 7% in the second quarter of 2016, impacted by lower demand in most markets outside Europe. Weaker machine sal
July 19, 2016 Read time: 2 mins
Sales down but Volvo CE remains optimistic
7659 Volvo Construction Equipment reports share growth as overall market declines in Q2.

Lower demand in most markets outside Europe weighed on Volvo CE’s second quarter 2016 revenue. But this was partially offset by gains in market share in the heavy equipment segment, according to a written statement from the Swedish manufacturer.

Adjusted for currency movements, Volvo CE reported net sales down 7% in the second quarter of 2016, impacted by lower demand in most markets outside Europe. Weaker machine sales in China and Brazil were partially offset by higher sales in Europe.

Net sales in the second quarter decreased by 12%, amounting to €1,409 million (€1,626 million. Adjusted for currency movements, net sales were down by 7%. Operating income was nearly €85.5 million in the period, equating to an operating margin of 5.9%, down from 8.8% last year at the same time.
 
“The second quarter saw Volvo CE improve operating margin compared to the first quarter, despite continuing weak demand in many markets,” said Martin Weissburg, president of Volvo Construction Equipment.

“It is encouraging to see that the ongoing internal efficiency programme continues to deliver results and that Volvo CE is gaining market share in the heavy segment, particularly in Europe.”  

Finance & Funding

Related Content

  • Volvo CE posts optimistic results
    February 7, 2014
    Volvo Construction Equipment is posting optimistic financial results that show an increase in deliveries in the fourth quarter of 2013. The firm reports deliveries climbing by 9% as global markets show sign of improvement. A slowly recovering global market helped Volvo Construction Equipment round off 2013 with sales up 3% in the fourth quarter and improved market share, especially in compact equipment. When adjusted for currency movements net sales increased further – to 6%. These improved figures are due
    Read More
  • Volvo CE benefits from strong sales of construction machines
    July 18, 2019
    Volvo CE reports strong financial performance on the back of healthy sales. The firm says that improvements in the key European and North American markets, coupled with a strong focus on its service business, volume flexibility in the industrial system and tight cost control have helped the company to deliver a good all round performance in its second quarter 2019 results. Net sales in the second quarter increased by 10%, amounting to SEK 26.814 billion, compared with SEK 24.403 billion in Q2 2018. Operati
    Read More
  • Volvo CE Q1 2013 net sales down 33% - but firm maintains profitability
    April 25, 2013
    Volvo Construction Equipment (Volvo CE) said sharply lower global demand, especially in the mining sector, during the first three months of 2013 had caused its 33% net sales decline in the quarter to US$1.829 billion (SEK 12,136mn). The Swedish construction equipment manufacturing giant’s operating income was also down in Q1 2013 to $75.38 million (SEK 500mn), compared to $314.97 million (SEK 2,089mn) in the first quarter of 2012, while operating margin was 4.1%, down from 11.6% in Q1 2012. Volvo CE said it
    Read More
  • Volvo CE ends 2023 with healthy sales
    January 29, 2024
    But despite increased orders in North and South America, overall global order intake remained low, declining by 26%, primarily caused by lower demand in China.
    Read More

Highlighted Content