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 wins on aggregate
    December 3, 2013
    In the Canadian city of Coquitlam, 3,628tonnes of glacial clay is being excavated every day across a 90hectare aggregate open-pit mine. LaFarge in North America is the largest diversified supplier of construction materials in the United States and Canada. For the last decade the company has used Greater Vancouver-based contractor, Vertex Excavating, to work across its 90hectare aggregate open-pit mine, exposing and transporting some of the best concrete aggregate material available on the market. Th
    Read More
  • Increased competition in the global wheeled loader market
    January 8, 2015
    There is increased competition in the wheeled loader market on a global basis - Mike Woof writes The wheeled loader segment is one of the most hotly contested in the earthmoving machine market. There is an enormous array of manufacturers competing in this segment, including European, US, Japanese, South Korean and Chinese firms. This last group is of particular note as China represents the biggest single market for wheeled loaders in the world.
    Read More
  • CECE Congress focuses on future of construction
    May 8, 2012
    The bi-annual CECE Congress was held in Spain when participants looked forward in a bid to see what will happen in the next ten years. Growth markets such as China, India and Brazil offer big opportunities to European construction equipment manufacturers. As companies, particularly those from China, start to expand outside their own countries the competition for business will increase, and it has been claimed that there is no such thing as 'the global market', rather it is the sum of hundreds, if not thousa
    Read More
  • Rokbak, the new name for Terex Trucks
    September 2, 2021
    Volvo CE’s off-highway articulated hauler business Terex Trucks has rebranded as Rokbak.
    Read More

Highlighted Content