Volvo CE looks strong on healthy orders

Volvo Construction Equipment (Volvo CE) reports a strong performance for the fourth quarter of 2017. This helped its parent company, the Volvo Group, achieve the highest sales and operating income in its history. Improved competitiveness coupled with growing demand, especially in Asia, boosted Volvo CE’s performance in sales, operating income, and order intake.
January 31, 2018 Read time: 3 mins
Volvo CE claims strong performance for its global construction machine sales
7659 Volvo Construction Equipment (Volvo CE) reports a strong performance for the fourth quarter of 2017. This helped its parent company, the 3970 Volvo Group, achieve the highest sales and operating income in its history. Improved competitiveness coupled with growing demand, especially in Asia, boosted Volvo CE’s performance in sales, operating income, and order intake.


In Q4 2017, net sales increased by 28% to SEK 16,733 million, compared with SEK 13,110 million for the same period in the previous year. When adjusted for currency movements net sales were up even more, to 34%. Operating income amounted to SEK 1,816 million, corresponding to an operating margin of 10.9% (3.8). Earnings were positively impacted by higher sales.

For the full year net sales increased by 31%, to SEK 66,497 million, compared with SEK 50,731 million for the previous year. Adjusted operating income increased to SEK 7,917 million, compared with SEK 2,246 million for the previous year, corresponding to an operating margin of 11.9% (4.4).

Demand in Europe improved during the quarter, and was up 16% by the end of November, helped by growth in the UK, France, Italy, Germany and a rapidly improving Russian market. North America was up by 10% over last year, helped by greater demand for excavators, while South America saw a gain of 17%, from low levels and mostly from markets outside of Brazil. The Middle Eastern market continued to slow, weighed by weak demand from Saudi Arabia. Excluding China, Asian markets were up 11% compared to last year, boosted by an improving mining sector. The Chinese market itself was strongly up, growing by 74% above last year, driven by greater demand for excavators and wheel loaders. The market for large excavators was up 121%, while compact excavators enjoyed an 83% improvement. By the end of November, the market for wheel loaders in China was up by 50%.

During the fourth quarter of 2017 Volvo CE saw net order intake increase by 48%, largely driven by strong demand in China and North America. Deliveries increased by 49% during the period, again boosted by higher volumes in China.

“The performance program to strengthen Volvo CE’s competitiveness combined with increased market demand yielded good results in 2017,” said Melker Jernberg, the new president of Volvo Construction Equipment. “Volvo CE improved profitability and gained market share in several of our stronghold segments of excavators, wheel loaders and haulers.”

Volvo CE has begun 2018 in confident mood. In January the company took another step to further strengthening its customer offer with the announcement that the Volvo brand was entering the rigid hauler market, introducing four new models.

Finance & Funding

For more information on companies in this article

Related Content

  • North American market fuels 15% rise in Volvo CE Q2 2012 sales
    July 31, 2012
    Volvo CE said strong sales, particularly in North America, helped the company record a 15% rise in equipment sales in Q2 of 2012 – bucking a worldwide reduction in the size of the global equipment sales market. The company’s operating income also rose in Q2 2012 to 35%, with operating margin up 13.3% on the same period of 2011. Volvo CE strengthened its market position in wheeled loader and excavator sales in China, taking a 14.7% share of the vital market.
    Read More
  • Volvo CE’s upbeat market view
    April 4, 2014
    Volvo Construction Equipment is posting optimistic financial results that show an increase in deliveries in the fourth quarter of 2013. The firm reports deliveries climbing by 9% as global markets show signs of improvement. A slowly recovering global market helped Volvo Construction Equipment round off 2013 with sales up 3% in the fourth quarter and improved market share, especially in compact equipment.
    Read More
  • Volvo CE bullish
    May 4, 2012
    Swedish-based firm Volvo Construction Equipment (Volvo CE) reports stronger-than-expected increases in demand from customers in Europe and North America. The firm says that this performance has helped boost third quarter sales. Steady sales in many markets having a positive impact on financial performance. Net sales in the three months of July-September rose by 18% to US$2.28 billion, compared with $1.94 billion in the same period last year and when adjusted for currency movements, net sales increased by 27
    Read More
  • Volvo CE sees slide in Chinese sales but growth in developed markets
    July 18, 2014
    Volvo Construction Equipment has seen sales in China fall, while its performance in the developed markets of North America and Europe has improved. The company has seen sales drop 9% for its second quarter results as improvements in North America and Europe fail to compensate for weak demand from China. The 25% improvement in North America and 11% improvement in Europe, compared to the same period in the year before, has been a cause for optimism. Net sales in the second quarter fell 9% to US$2.144 billion
    Read More

Highlighted Content