VOLVO Construction Equipment (Volvo CE) has posted “significant” improvements in sales, earnings and order intake, helping the Volvo Group to what was described as its “best ever” quarter.
The growth has been attributed to high demand in most markets and a competitive offering, which has led to a 32% rise in net sales compared to the same period the previous year. Good cost control also resulted in “strong improvement in profitability”, the company said in a statement.
Operating income rose to 3,675 million Swedish Krona (SEK), up from the 2,430 million reported for the same period the year before, equating to an operating margin of 15.1%.
The second quarter 2018 also saw a 41% increase in order intake, while deliveries in the period were up 38%, at 24,108 machines.
Volvo noted that order intake in China was particularly strong, rising by 72%. This was driven by increased demand for SDLG wheel loaders and SDLG and Volvo excavtors, the company said.
The second quarter 2018 saw continuing improvements in demand in most major markets. In the year-to-date, Europe is up 8%, North America is up 17% and South America up 28%. Asia (excluding China) has risen 19% while the Chinese market was up 47%.
Melker Jernberg, president of Volvo CE commented, “Volvo CE is well invested in strong products and services and a strategy that is serving both our customers and ourselves well. We continue 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.”
