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

  • The payload answer for ADT haulage?
    July 8, 2016
    Will increased ADT load capacity provide a suitable solution to increasing aggregate and earthmoving haulage needs? Mike Woof reports The rule of thumb with off-highway machinery is that for bulk operations, larger equipment can deliver economies of scale, with bigger payloads allowing a better cost/tonne. Heavier machines may be less versatile than more compact units, so a type of equipment that retains its versatility as it is scaled up in size can offer major benefits. For the articulated dumptruc
    Read More
  • Rolls Royce powers ahead in first half 2021
    August 9, 2021
    Profit and orders are up at Rolls Royce Power Systems, maker of mtu engines
    Read More
  • Upgrades to Komatsu’s wheeled excavators promise multiple benefits
    April 24, 2018
    Komatsu’s upgraded wheeled excavators, the PW180-11 and the PW148-11, have been designed to deliver greater efficiency, versatility and improved operator comfort with a range of updates on previous models. “A lot of work went in to the redesign of these wheeled excavators, with a dramatic increase in versatility for customers,” says Sebastian Zienau, product manager at Komatsu Europe. “Joystick steering, an integrated system for controlling tools and the factory-installed quick couplers also boost
    Read More
  • Emissions legislation driving machinery design
    June 13, 2012
    Legislative and economic factors are impacting upon the earthmoving equipment market - Mike Woof reports No-one who has any connection with the construction equipment sector can have failed to notice that increasingly tough emissions legislation has changed the shape of machines over the last 10 years or so. A series of targets have been set and met with regard to the exhaust emissions permitted from off-highway machines used in North America and Europe. The latest round of requirements has seen the intr
    Read More

Highlighted Content