Strong second quarter for Volvo CE
Company posts best ever quarter with significant improvements in sales, earnings and order intake
VOLVO Construction Equipment (Volvo CE) have reported a 32% rise in net sales and a strong improvement in profitability in the second quarter of 2018, compared with the same period the year before.
Net sales in the second quarter amounted to SEK24,403 million, compared with SEK18,439 million in the same period of 2017. Operating income was also strongly up, at SEK3,675 million, eclipsing the SEK2,460 reported in the same period in 2017 and equating to an operating margin of 15.1% (13.3%).
The second quarter of 2018 also saw order intake increase by 41%, whilst deliveries in the period were up 38%, at 24,108 machines. Order intake in China was particularly strong, rising by 72%, driven by increased demand for SDLG wheel loaders and SDLG and Volvo excavators.
The second quarter of 2018 saw a continuation of the improving demand situation in most major markets. In the year-to-date, Europe is up 8%, North America up 17% and South America up 28%. Asia (excluding China) is up 19%, whilst the Chinese market continues its strong development, rising 47%.
‘Volvo CE are well invested in strong products and services and a strategy that is serving both our customers and ourselves well,’ commented company president Melker Jernberg (pictured).
‘We continue our efforts to improve efficiency across the supply chain and are moving in the right direction. Finding the balance between investing in new technologies while at the same time maintaining cost-consciousness and flexibility will continue to be in focus during the remainder of the year.’