Volvo CE sees strong third quarter results

359 Volvo CE is bullish and claims a strong financial performance in its third quarter sales figures. The company claims it has made market share gains in key segments while its financial results have also benefited from good cost control and growing demand in most areas. Volvo CE says it has had an especially strong third quarter for 2017 with sales up 34% to US$1.847 billion (SEK15.1 billion) compared with $1.41 billion (SEK11.54 billion) for the same period in 2016. Meanwhile order intake for the third quarter has increased 45% compared to 2016, while deliveries have gained 48% for this period. Operating income has jumped an impressive 237% to $247.83 million (SEK2.02 billion) from $73.6 million (SEK601 million) in 2016. Profitability has also made major gains, aided by the strong sales, high levels of throughput in the firm’s manufacturing facilities and also from the sale of its UK dealership operation.

Net order intake in the third quarter increased by 45% compared with the same quarter in 2016. This increase was assisted by higher intake from China, as well as growth in other Asian markets and Russia. Deliveries increased by 48%, to 14,431 machines.

Up to the end of August, the European market was up 15%, driven by the growth in the UK, France and Italy. The German market is slightly above last year, while the recovering Russian market is up 101%. North America is 7% above last year, due to growth in demand for excavators, both compact and larger general-purpose machines. The South American is 6% above last year but remains at very low levels. In Asia (excluding China) the total market is 12% above last year, with continued growth in India and Indonesia, helped by a recovering mining sector. The Chinese market is 74% above last year, with strong recoveries in both excavators and large wheel loaders.

“This is an especially strong performance. Volvo CE has responded well to the growing demand, with volume increases up 48%, while at the same time taking a significant step up in profitability,” commented Martin Weissburg, president of Volvo Construction Equipment. “We also continue to gain market share within our product and market strongholds.”