Operating income was up 16% during the period, at €30.8 million, compared to €26.6 million in the same period of the previous year. Operating margin also saw improvements in the fourth quarter, at 2.1% – up from 1.9% in the fourth quarter of 2012.
Despite the sales increases in the final three months, for the full year 2013 Volvo CE saw sales decrease by 16% to €6.04 billion, compared to €7.2 billion in 2012. Operating income was also down during the year, a result of tough price competition, weak product mix, low capacity utilisation and unfavourable exchange rates, to €293.2 million, down from €641 million in the preceding year. Operating margin was also affected, slipping to 4.9% in 2013 from 8.9% in 2012. These figures reflect the general weak market conditions experienced during the year.
The prospects for 2014 are expected to show some improvements as global markets recover. For 2014 the total markets in China and Europe are expected to increase in the range of 0-10% measured in units, while North America, South America and Asia (excluding China) are all expected to be in the range of minus 5% to plus 5%. “For 2014 we expect a slight improvement in market demand, mainly driven by China and Europe,” commented Martin Weissburg, the incoming president of Volvo Construction Equipment, who joined the company on January 1st 2014.
