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

  • Global sales of earth moving machinery surge 23% in 2018
    April 23, 2019
    Global sales of earth moving machinery in 2018 accelerated sharply – up 23% on 2017 to top out at 1 million units. The record result in 2018 was driven by a combination of several factors. One of these factors is investments in construction on a global scale in excess of €7,150 billion, as highlighted by data analysed by Prometeia for SaMoTer Outlook 2019, the sector observatory presented today at Veronafiere during the 5th edition of SaMoTer Day. The event is one of the stages in the run up to the 31st
    Read More
  • Strong attendance points to a successful bauma China show
    December 17, 2014
    Even heavy rain showers on the first day of the bauma China exhibition in Shanghai did not dissuade the crowds packing the outside exhibition areas - Mike Woof writes Those firms exhibiting at bauma China 2014 in Shanghai benefited from a strong show that attracted a record attendance of 191,000, an increase of 6% over the 2012 event. A wide array of new equipment was on show from the 3,104 firms exhibiting, an increase of 14% from 2012. There was a strong focus on technology and new engines required for
    Read More
  • Kobelco targets growth in North America and Europe after re-entering markets
    May 19, 2014
    Kobelco Construction Machinery Group is expecting strong sales in North America and Europe in the 2014 financial year after recently re-entering both key markets after a decade-long absence. Consolidated net domestic sales in Japan in 2013 financial year (April 2013-March 2014) were up 29.2% year-on-year to US$1.362 billion (138.3 billion yen), with overseas sales at $1.771 billion (179.9 billion yen), a year-on-year increase of 11.9%. The ratio of overseas sales to consolidated net sales decreased slightl
    Read More
  • Wacker’s strong financial performance in 2017 showed growth
    March 23, 2018
    “Over the coming years, we want to rank among the top three providers of core products based on market share in the industry. We also aim to grow faster than the market. In the past year, we have proven that this is possible,” said Lehner. Within the framework of the “Strategy 2022” roadmap, the Group has set itself the goal of significantly exceeding the €2 billion revenue mark in the medium term and achieving an EBIT margin of over 11%. It aims to gradually reduce net working capital to below 30% of
    Read More

Highlighted Content