Strong sales from Volvo CE show global markets recovering
By Andy Brown28 January 2022
Strong sales in Europe, North America and South America saw Volvo Construction Equipment (Volvo CE) report net sales in 2021 of SEK 92.031 billion (US$9.7 billion) – rising from SEK 81.453 billion (US$8.6 billion) in 2020.
The company says that this increase in sales demonstrates that the global market is continuing to spring back from the initial hit caused by the disruptions of 2020. However, it was noted that sales in China have fallen – the world’s biggest construction equipment market reported a drop of 1%.
This decline is attributed to a saturated market for excavators following last year’s high sales levels and the overall slowdown in construction and infrastructure investments. All other regions in Asia performed well, particularly Korea.
The European market showed a continuation of solid growth (27%) with a high level of infrastructure investments and a recovery in the rental segment. North America’s growth (23%) was supported by investments in commercial real estate and strong housing construction, while South America’s increase of 65% was largely driven by a high demand for commodities.
Africa and Oceania saw sales increase by around 11% from the full year of 2020 to 2021.
Volvo CE also announced its fourth quarter 2021 results. In Q4, 2021, net sales increased by 5% to SEK 21.8 billion (US$2.3 billion). Adjusted for currency movements, net sales increased by 2%, of which net sales of machines were flat and service sales increased by 14%.
“The industry continues to be confronted by the effects of the ongoing Covid-19 pandemic in combination with additional challenges such as transport disruptions, global component shortages and an overwhelmed supply chain,” said Melker Jernberg, President of Volvo CE.
“The greater flexibility, digitalization and innovation across our products and services – not forgetting the stringent targets we have set ourselves in building a better world – have contributed towards a solid performance for 2021.”