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

  • Volvo CE’s committed to innovation despite tough global market
    April 12, 2016
    Volvo Construction Equipment is said to be demonstrating its commitment to innovation despite the tough global sales market. The Swedish construction and quarrying equipment giant has this week unveiled its 90tonne Tier 4 Final/Stage IV complaint EC950E hydraulic crawler excavator – the biggest hydraulic crawler excavator it has ever made - and its 55tonne A60H articulated hauler. “I’m very pleased to say that on the first day of the show, we were taking order on this,” said Martin Weissburg, presiden
    Read More
  • Deutz releases Q1 financial results
    May 5, 2015
    Engine firm Deutz has announced its financial results for the first quarter of 2015. The firm says that business performance is in line with expectations. The company has seen a decline in unit sales and revenue due to the effects of advance production of engines in the previous financial year. However welcome news is that it has experienced a five-fold increase in operating profit. The new orders received by the Deutz Group during the reporting period totalled €321.0 million, down by 22.5% from the previ
    Read More
  • Wacker Neuson’s strong results reflect demand for small equipment
    November 12, 2015
    The latest financial results for Wacker Neuson reveal strong demand for compact construction machines. The firm has reported revenue in excess of €1 billion for the first nine months of 2015. This marks an increase in business activity compared to the same period last year and a record high for the group. In light of the downturn in key markets in the third quarter, the company revised its forecast for 2015 downwards. However, it still expects to achieve record revenue business levels for 2015.
    Read More
  • European equipment sales up 15% in 2017, according to the CECE
    March 16, 2018
    European construction sales grew by 15% in 2017, according to the Annual Economic Report 2018* from the CECE - Committee for European Construction Equipment. After a very strong first quarter, growth slowed down in the second quarter, before taking off again in Q3 and Q4. Current levels of sales are on par with the levels seen in 2006 and 2008, but the industry is still 20% below the 2007 peak.
    Read More

Highlighted Content