VOLVO Construction Equipment (Volvo CE) has seen a 30% jump in sales for the first financial quarter of 2018.
The company has also seen profitability rise 79%, attributed to “strong demand increases” in all major markets, particularly Asia.
During the first three months of the year, the company saw net sales increase to 20,914 million Swedish Krona (SEK) from SEK 16,101m for the same period the previous year. Operating income rose to SEK 2,888 M, up 79% compared to SEK 1,615 M in the first quarter of 2017.
Order intake saw a 37% rise to 23,938 machines, with increases in orders from all markets – North America and Asia, in particular. Deliveries were also up 35% during the period, to 22,102 machines.
The construction equipment market continued to improve during the quarter, with all regions showing growth, Volvo said. The European market was up 10%, driven by increased demand in Germany, Italy and parts of Eastern Europe.
North America was up 21%, driven mainly by demand for excavators, while South America continued to recover from low levels, rising 27%.
Asia (excluding China) was up 21% compared to last year, boosted by growth in India, Indonesia, Turkey and the Middle East. Strong demand for large excavators and wheel loaders helped the Chinese market improve by 13% during the quarter, Volvo added.
Volvo CE president Melker Jernberg commented on the results, “In general, market demand is strong and Volvo CE has continued to improve sales and profitability. We are leveraging the benefits of these increased volumes well, while at the same time keeping a tight control of costs.”
