Volvo CE benefits from strong sales of construction machines

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
July 18, 2019 Read time: 2 mins

359 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. Operating income also grew, reaching SEK 4.153 billion in the period, up from SEK 3.675 billion reported in the same period the year before, equating to an operating margin of 15.5% (15.1%).

The second quarter 2019 saw order intake increase by 6%, with 5316 SDLG branded products increasing by 28%. Order intake was particularly strong in China, rising 21%, driven by strong demand for SDLG branded excavators and wheel loaders. Deliveries were up 12% in the period, again driven by growth in China and stable demand in Europe and North America.

The second quarter of 2019 saw growth in Europe and North America, with a small decline in Asia (excluding China). In the period up to May, demand for construction equipment in Europe was up 5% compared to the same period the year before, while demand for large excavators, road equipment and articulated haulers pushed the North American market up 7%. South America saw demand rise 6% while Asia (excluding China) was down 11% compared to the previous year. The Chinese market saw demand rise by 8%, due to growth in the compact excavator segment.

“Volvo CE continued on the path of increased sales and improved profitability in the second quarter,” commented Melker Jernberg, president of Volvo CE. “Volume flexibility in the industrial system and tight cost control will continue to be in focus in the second half of the year.”

Finance & Funding

For more information on companies in this article

Related Content

  • Times they are a changing
    July 23, 2012
    Construction in China still appears to be on course for growth even with the gloomy economic outlook, as it enjoys "a strong budgets position." Patrick Smith reports One thing is certain in the current global economic climate: nothing is certain. And while China has not been unaffected by the economic events of recent months it has, according to Robert Zoellinck, president of the World Bank, a very strong current account and budgetary position. For some years, the nation has enjoyed double digit growth (the
    Read More
  • CONEXPO Russia is rouble rouser
    July 19, 2012
    Huge investment in new and existing Russian transport infrastructure has created a wealth of commercial opportunities for major construction equipment manufacturers as Guy Woodford discovered at the recent CTT 2012/CONEXPO Russia exhibition A 20% rise in visitor numbers and a 15% increase in exhibitors at this year’s CTT 2012/CONEXPO Russia, compared to 2011 show levels, illustrated the attraction of big infrastructure project spending in Russia to the world’s largest construction equipment companies.
    Read More
  • CTT 2012/CONEXPO Russia visitors up 20%
    June 13, 2012
    A 20% rise in visitors and a 15% increase in exhibitors at this year’s CTT 2012/CONEXPO Russia, compared to 2011 show levels, illustrated the attraction of big infrastructure project spending Russia to the world’s largest construction equipment companies. Major global brands such as JCB, John Deere, Volvo Construction Equipment (CE), Komatsu, Liebherr, and Wirtgen were among the 911 construction equipment companies from 28 different countries present for the five-day event covering more than 124,000m² at th
    Read More
  • Advanced, low emission, fuel efficient earthmoving
    February 23, 2012
    Manufacturers are rolling out sophisticated machines for the European, North American and Japanese markets - Mike Woof reports. This year has been a pivotal period for the development of advanced, low emission earthmoving machines. During 2011 an array of manufacturers have introduced new models designed to comply with the latest Stage IIIB/Tier 4 Interim emissions regulations introduced for
    Read More

Highlighted Content