Net sales in the three months July to September increased to US$1,735 million (SEK 12,582 million), up from $1,692 million (SEK12,278 million) for the same period last year.
However, when adjusted for currency movements, net sales were down by 3% during the period. Volvo’s statement said “sales during the quarter were weighted down by a loss of momentum in Europe and an accelerated negative growth in China”.
Despite largely flat sales in the period, operating income rose 5.1% to nearly $89.4 million and operating margin was up 4% to around $58 million (SEK496 million).
Volvo CE president Martin Weissburg said good momentum in North America was offset by a loss of impetus in Europe and accelerated negative development in the Chinese construction equipment market.
“We expect demand in China to continue down for the rest of the year and into 2015,” he siad.
“To react to this market our focus is on adapting production to ensure a balance between demand and supply, and continuing to execute on our efficiency and cost saving program – while at the same time defending prices and gaining market share.”
