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

  • Wacker Neuson sees 7% revenue growth for 2015 but remains cautious
    March 18, 2016
    Munich-based construction equipment manufacturer Wacker Neuson reported growth in revenue for fiscal 2015, despite difficult market conditions. However, a company statement said profit dipped due to crises in key industries and regions, leading to “a cautious revenue and earnings forecast for 2016”. Group revenue was €1.38 billion for 2015, up 7% on €1.28 billion for 2014. When adjusted to discount currency effects, revenue grew by 3%. During the first half of the year, revenue grew 14% on the same
    Read More
  • Volvo CE now offering rigid truck range
    January 11, 2018
    Volvo CE is now offering its own range of rigid haul trucks. There are four machines in the range from the 40tonne class R45D up to the top of the range R100E for the 90tonne class. The trucks have been developed with the assistance of in-house expertise at the Terex Trucks facility in Motherwell, Scotland, which Volvo CE now owns. The range is being launched initially in less regulated markets and comprises the R45D, R60D, R70D and R100E. The R60D and R70D are for the 54tonne and 65tonne payload classes
    Read More
  • CNH Industrial forecasts growth for its Construction Equipment business in 2014
    January 31, 2014
    CNH Industrial is forecasting improved performance from its Construction Equipment business in 2014 after the overall Group recorded net revenues of €25.8 billion in 2013 – up 4.3% on a constant currency basis on 2012 revenues. Revenues from the Construction Equipment and Agricultural businesses, the former including the globally renowned Case and New Holland brands, were in line with 2012 at €16.006 billion. On a constant currency basis, revenues from Construction Equipment-Agricultural increased by €759
    Read More
  • Cummins posts strong results
    May 5, 2022
    Cummins has posted record quarterly revenues amid healthy off-highway engine demand
    Read More

Highlighted Content