Sales between January 1 and March 31, 2012 were up 17% on the same three months of 2011.
Despite a 26% decline in the overall construction machine sales market in China during the first quarter of this year, Volvo CE says it maintained sales in the country and reinforced what the company claims is its number one position in the Chinese wheel loader and excavator market together with its joint-venture partner,
Volvo CE also posted new record Q1 operating income and operating margin figures. The company saw a 21% increase in operating income to US$316.6million (SEK 2.13billion), and an operating margin of 11.8%, up from 11.4% in the same period last year. Both measures of profitability are records for the company in a first quarter, and are attributable to sales price realization, currency effects and internal cost reductions.
The value of Volvo CE’s order book on 31st March 2012 is also said by the company to be 35% higher than the same stage of the previous year.
“The strong sales growth and high profitability is a combination of growth in all regions, especially in North America, and our success in achieving sales and profitability is on a par with the preceding year in China, despite the significant weakening of that market,” says Volvo CE’s President Pat Olney. “Our success in China was due to our continued ability to capture market share, thanks to a strong product portfolio and our efforts to establish stable distribution channels.”
Between January 1 and March 31 this year, Volvo CE opened a new plant in Linyi, China, that will make SDLG branded equipment. Meanwhile in Bangalore, India, a new factory was inaugurated to make Volvo excavators, alongside the existing road machinery products already produced at the facility.
