VOLVO CE is reporting a dip in net sales for Q2, driven by the downturn in the industry, while still delivering on its transformation ambitions with its ‘biggest product launches in years’.
The manufacturer revealed that demand in many markets has slowed, particularly compared with the high levels reported from the same period last year. Earnings have been impacted by lower volumes in Europe and North America, though order intake in Asia has increased by one fifth, largely driven by the China market, leading to a global growth of 9%.
In Q2, 2024, net sales amounted to SEK 24,423 M (28,999). Adjusted for currency movements this represents a decrease in net sales of 16%, of which net sales of machines dropped by 19% while service sales increased by 2%.
In June during its Volvo Days event, Volvo CE unveiled its biggest product renewal in the company’s history. It involved both conventional machines, such as the launch of a new generation of excavators and two new rigid haulers, the R60 and R70 stage V for regulated markets, as well as zero-exhaust emission solutions, including an expansion of the mid-size range with the L90 Electric and L120 Electric wheel loaders, as well as the EWR150 Electric, Volvo’s first electric wheeled excavator.
Scheduled for stepwise introductions over the next 12 months, they represent the next step on the company’s transformation journey. The same quarter, Volvo CE inaugurated its expanded facilities in Braås, Sweden, in its work to move towards more sustainable power sources for articulated haulers.
Melker Jernberg, president of Volvo CE, said, “We continue to drive innovation and investments to remain at the forefront of the transformation to more sustainable solutions for the benefit of our customers, shareholders and society at large. It is a testament to our commitment to perform and transform that we are able to ensure profitability during challenging times while still setting the course for construction innovation.”
