Volvo CE Q2 Sales Up 10%
By Mike Brezonick18 July 2019
Market growth in Europe and North America helped Volvo Construction Equipment deliver sales, earnings and delivery improvements during the second quarter, the company announced.
“Volvo CE continued on the path of increased sales and improved profitability in the second quarter,” said Melker Jernberg, president of Volvo CE. “Volume flexibility in the industrial system and tight cost control will continue to be in focus in the second half of the year.”
Improvements in the key European and North American markets, coupled with a strong focus on its service business, volume flexibility in the industrial system and tight cost control helped Volvo CE during the period. Net sales in the second quarter increased by 10%, amounting to SEK 26,814 million ($2.866 billion) versus SEK 24,403 million ($2.6 billion) in 2018. Operating income also continued its upwards trajectory, at SEK 4153 million ($444 million) in the period, up from SEK 3675 million ($393 million) reported in the same period the year before, equating to an operating margin of 15.5% compared to 15.1% in the second quarter of 2018.
The second quarter 2019 saw order intake increase by 6%, with SDLG branded products increasing by 28%. Order intake was particularly strong in China, rising 21%, driven by strong demand for SDLG branded excavators and wheel loaders. Deliveries were up 12% in the period, again driven by growth in China and stable demand in Europe and North America.
The second quarter of 2019 saw growth in Europe and NorthAmerica, with a small decline in Asia (excluding China). In the period up toMay, demand for construction equipment in Europe was up 5% compared to the sameperiod the year before, while demand for large excavators, road equipment andarticulated haulers pushed the North American market up 7%. South America sawdemand rise 6% while Asia (excluding China) was down 11% compared to theprevious year. The Chinese market saw demand rise by 8%, thanks to growth inthe compact excavator segment.