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

  • Alimak reports strong business – acquiring other firm
    October 28, 2016
    The Alimak Group reports good business levels for the January-September 2016 period and is looking to make an acquisition. The firm said that it has had profitable growth in the third quarter with an operating margin (EBIT) of15.4%, compared with 15.2% for the same period last year. Meanwhile it has seen a 6% growth in order intake, driven by a healthy demand for construction equipment. The operating margin (EBIT) for after sales meanwhile has been 32.4%, compared with 29.5% for the same period last year.
    Read More
  • Wacker Neuson’s record nine month revenues, despite tough economy
    November 27, 2012
    Wacker Neuson (WN) achieved record nine month revenues in the year to September 30, 2012 – while also recording a slight year-on-year rise in Q3 2012. Group revenue in the first nine months of 2012 rose 12% to €812.6 million, compared to €727.6 million in 2011. Light equipment and compact equipment were the strongest sections, reporting increases of 10% and 14% respectively. The Americas was the strongest regional revenue driver, with a rise of 22%. In Europe, revenue grew by 8%. However, WN Group revenue f
    Read More
  • Deutz delivers on strong corporate results
    July 11, 2018
    German engine maker Deutz reports that its financial results reveal a successful level of trading for the first half of 2018. The firm’s preliminary financial results for the first half of 2018 show that the volume of new orders rose by 36.6% compared with the same period in the previous year. New orders hit €1.097 billion compared with €803 million in the first half of 2017. Following the strong start to the year, new orders were also very high at €522 million in the second quarter of 2018, a 30.5% increas
    Read More
  • Liebherr’s results have been hit by the pandemic
    April 20, 2021
    Liebherr’s 2020 financial results have been hit by the pandemic.
    Read More

Highlighted Content