Volvo CE sees strong financial performance in second quarter

Strong financial performance in claimed by Volvo CE for the second quarter of 2017. The firm saw sales grow 36% in a strong second quarter, aided by its transformation programme and from increasing demand in key markets. There were significant improvements in both sales and earnings. Good cost control as volumes return also resulted in a significant improvement in profitability. Net sales in the second quarter amounting to SEK 18,511 million for the second quarter of 2017, compared with SEK 13,630 million f
July 19, 2017 Read time: 2 mins
Strong financial performance in claimed by 359 Volvo CE for the second quarter of 2017. The firm saw sales grow 36% in a strong second quarter, aided by its transformation programme and from increasing demand in key markets. There were significant improvements in both sales and earnings. Good cost control as volumes return also resulted in a significant improvement in profitability.


Net sales in the second quarter amounting to SEK 18,511 million for the second quarter of 2017, compared with SEK 13,630 million for the same period in 2016. Operating income was also strongly up, at 2,460 million in the period, more than three times the 810 million reported in the same period the year before, equating to an operating margin of 13.3% (5.9%).

The second quarter 2017 also saw order intake increase by 54%, while deliveries in the period were up 49%, at 17,472 machines. Order intake in China was particularly strong, rising by 221%, driven by increased demand for 5316 SDLG wheel loaders and SDLG and Volvo excavators.

The second quarter of 2017 saw increased demand in most major markets. Europe was up 14%, while North and South America both saw a 4% improvement. Asia (excluding China) was up 8%, while the Chinese market was up almost two thirds, at 65%.

“Demand for construction equipment continues to improve in Europe and China, and also a clear recovery in the mining segment in many parts of the world,” commented Martin Weissburg, president of Volvo Construction Equipment. “Thanks to Volvo CE keeping tight control over costs as volumes return, these increased sales have resulted in a significant improvement in profitability. In general, Volvo CE has competitive products and services, with good positions in key markets. We will continue to focus on core products and segments, continuous improvement, lowering costs and improving quality.”

Finance & Funding

For more information on companies in this article

Related Content

  • Wacker Neuson Group confident for 2016 despite a difficult start
    May 13, 2016
    During the first quarter of 2016, international light and compact equipment manufacturer Wacker Neuson continued to feel the impact of difficult conditions across many of its markets, in particular in the Americas region. Although the group managed to maintain revenue at almost the same level as the record-breaking prior-year quarter, it reported lower profit figures for the period. Company management confirmed its forecast for fiscal 2016. Group revenue for the first quarter of 2016 amounted to €316.
    Read More
  • German engine manufacturer Deutz not to meet fully year earnings
    October 21, 2014
    German engine manufacturer Deutz Group warned that a third quarter dip in sales revenue and warranty issues concerning its Compact Engines segment meant the company will not meet its previous forecast for the financial year 2014. A statement from the Cologne-based company said “significant costs will be incurred over the coming years in connection with warranties and goodwill for engines from the DEUTZ Compact Engines segment, primarily relating to engines manufactured in 2011”. In the third quarter o
    Read More
  • Profit boost for Rolls-Royce Power Systems
    August 8, 2022
    Rolls-Royce Power Systems sees record order intake in second quarter.
    Read More
  • Deutz announces strong results with interim management statement
    May 12, 2017
    German engine maker Deutz reports a strong performance with its interim management statement for the first quarter of 2017 today. New orders rose significantly to reach €403.2 million, a 23.2% increase over the same period in the first three months of last year when orders hit €327.3 million. The figures also showed a 23.6% growth over the figures for the previous quarter when new orders reached €326.1 million. The firm sold 37,153 engines, an increase in unit sales of 15.7% over the same period for 2016 wh
    Read More

Highlighted Content