However, the manufacturer revealed ‘weak’ demand in Europe and North America was partially offset by a ‘strong rebound’ in the Chinese market. Despite lower demand impacting sales, profitability ‘held up well’, Volvo added.
Adjusted net sales amounted to SEK 22,876 M. Operating income was also impacted, at 3,108 M, down from the 4,153 reported in the same period the year before, equating to an operating margin of 13.6%.
Despite the impact of the pandemic on sales, Q2 saw order intake increase by 11%, which Volvo said was driven by a ‘strong demand’ for the company’s SDLG branded machines, which were up by 31%.
The year to the end of May saw both the European and North American markets, measured in units, shrink by 22%, while the Asian market (excluding China) reduced by 21%. The Chinese market was up 13% at the end of May, with the South American market also in positive territory, up by 8% at the same point in the year.
Melker Jernberg, head of Volvo Construction Equipment said, “While demand for construction equipment in both Europe and North America was weak during the second quarter we were able to leverage our strong position in China, which rebounded strongly in the period. This is allowing us to act from a position of relative strength and to drive transformational technologies that are moving our industry to more sustainable solutions. We are continuing to invest in electrification, automation and connectivity.”