VOLVO Construction Equipment has reported a 23% dip in net sales for Q3, 2024 compared with the same period last year.
Lower volumes in Europe and North America for the quarter in comparison to the ‘very high’ levels of last year have caused a drop in overall net sales. However, Volvo CE reported it has maintained ‘overall good margins’ and overseen a growth in the China market.
The manufacturer stated that this quarter has also seen the company support customers by balancing today’s challenges with its ‘accelerated focus’ on transformation.
In Q3, 2024, net sales decreased by 23% to SEK 18,809 M, compared to the high earnings of SEK 24,296 M for the same quarter last year. When adjusted for currency movements net sales decreased by 20%, of which net sales of machines fell by 24%, while service sales increased by 2%, reflecting the market’s growing interest in digital solutions.
However, net order intake has risen slightly, driven largely by a 59% increase in South America and a 44% increase in Europe, strengthened also by a more modest rise in all other regions except North America.
Melker Jernberg, head of Volvo CE, said, “We are living in turbulent times and, like other companies, are feeling the effects of a market slowdown. But we are maintaining our leading position with a strong portfolio, the continued roll-out of new products and services and our steadfast commitment to the industry transformation.
“The ambitions we have set out towards building the world we want to live in remain unchanged and we take pride in working together to balance the priorities of today with our confident vision for tomorrow.”
Volvo CE continued to launch new and upgraded models, including an updated range of the new generation excavator portfolio, as well as the L120 Electric wheel loader.
The quarter also saw the inauguration of a new wheel loader facility in Arvika, Sweden, designed to support the production of electric wheel loaders.
