Volvo bullish

The Swedish-based manufacturer 2394 Volvo Construction Equipment reports that its final quarter for 2010 showed a major financial improvement. Sales rose 51% by value over the 2010 financial year to €6.11 billion (SEK53.81 million) compared with the €3.82 billion (SEK33.5 billion) achieved in 2009. Deliveries were strong and increased 70% in terms of units, hitting an all-time record of 66,000 machines for the year. Operating income, meanwhile, leapt to €702 million (SEK 6.2 billion), up from a loss of €454 million (SEK 4 billion) in the preceding year. Operating margin also improved considerably, up to 11.5% in 2010 to €199.5 million (SEK 1.758 billion) compared to a loss of 11.2% at €64 million (SEK 564 million) in the year before. The operating margin of 12% in the fourth quarter was the firm's highest ever for this period. The company's order bookings are also strong, with a total value on December 31st some 45% higher than on the same date in 2009. The fourth quarter of 2010 saw the total world market for construction equipment within Volvo Construction Equipment's product range rise by 31%, compared to the same period in 2009. This was strongly driven by the BRIC countries, which saw an increase of 47%. In Europe the total market was up by 4% and North America was up by 31% during the quarter. Asia increased by 39%, strongly influenced by China and India, where the markets increased by 53% and 24% respectively. Other markets were up by 40%, helped by a rapidly recovering Russian economy, which saw a 269% improvement.