Volvo CE posts optimistic results

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 sign 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. When adjusted for currency movements net sales increased further – to 6%. These improved figures are due
February 7, 2014 Read time: 2 mins
2394 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 sign 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. When adjusted for currency movements net sales increased further – to 6%. These improved figures are due largely to higher sales of smaller equipment, helping to boost deliveries by 9% during the quarter.

Operating income was up 16% during the period, at €30.8 million, compared to €26.6 million in the same period of the previous year. Operating margin also saw improvements in the fourth quarter, at 2.1% – up from 1.9% in the fourth quarter of 2012.

Despite the sales increases in the final three months, for the full year 2013 Volvo CE saw sales decrease by 16% to €6.04 billion, compared to €7.2 billion in 2012. Operating income was also down during the year, a result of tough price competition, weak product mix, low capacity utilisation and unfavourable exchange rates, to €293.2 million, down from €641 million in the preceding year. Operating margin was also affected, slipping to 4.9% in 2013 from 8.9% in 2012. These figures reflect the general weak market conditions experienced during the year.

The prospects for 2014 are expected to show some improvements as global markets recover. For 2014 the total markets in China and Europe are expected to increase in the range of 0-10% measured in units, while North America, South America and Asia (excluding China) are all expected to be in the range of minus 5% to plus 5%. “For 2014 we expect a slight improvement in market demand, mainly driven by China and Europe,” commented Martin Weissburg, the incoming president of Volvo Construction Equipment, who joined the company on January 1st 2014.
Finance & Funding

For more information on companies in this article

Related Content

  • Hyundai Heavy Industries Europe announces encouraging 2013 sales
    February 13, 2014
    Hyundai Heavy Industries Europe (HHIE) sold 3% more Hyundai construction equipment across Europe in 2013, compared to 2012. In the UK market, it was the heavy line crawler excavators (14tonne – 80.5tonne) that showed the most impressive growth performance – 308 were sold in the UK in 2012 and in 2013 a total of 522 machines were sold, which equates to a 69.48% increase in units sold. This increases the market (comparable products from construction equipment OEM’s) in the UK from 8.34% in 2012 to 12.69% in
    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
  • Italian construction machine market growing
    May 4, 2016
    A slow but steady improvement in machine sales is being observed in Italy as the market recovers. Over the first three months of 2016, 1,977 construction machines have been sold into the Italian market, according to the country’s construction equipment manufacturing association, the UNACEA. This gain in sales represents an increase of 29% compared to the same period in 2015. The sales were for 1,879 earthmoving machines and 76 road machines.
    Read More
  • US machine manufacturers hit hard by global downturn in construction
    November 30, 2015
    The latest report from the US-based Association of Equipment Manufacturers, AEM, makes for sobering reading. For the first six months of 2015, US exports of construction equipment dropped by 17% compared with the same period in 2014. The US manufacturers have been hit doubly, first by a tough international market and secondly by the high value of the US Dollar.
    Read More

Highlighted Content