Volvo Construction Equipment has reported a 5% increase in revenue and an 80% rise in profitability during the second quarter of 2015.
The results have been achieved despite “significant declines in major markets”, according to the Swedish machinery manufacturer.
The company has cited favourable currency developments and a solid product mix as drivers behind the results. However, “strong economic headwinds in many of [Volvo CE’s] principle markets” saw deliveries decrease by 24% in Q2 2015.
Commenting on the results, Martin Weissburg, president of Volvo CE, said: “The second quarter saw Volvo CE continue its targeted sales activities and the implementation of the restructuring programme we launched in 2014. With the exception of North America, demand was down across the board, resulting in a decline in equipment deliveries by almost a quarter.
“That said, our products are well received by the market and operating margin improved significantly during the quarter to 8.8%, thanks to the efficiency programme, favourable product mix, and positive currency effects,” he added.
Net sales in the second quarter increased by 5% to $1.815bn (SEK15.419bn), from $1.721bn (SEK14.624bn) during the same period of 2014. The firm’s operating income increased by 80% to $159.23m (SEK1.353bn) in Q2 2015, compared to $88.38m (SEK751m) in the second quarter of last year.
At 8.8%, Volvo CE’s Q2 2015 operating margin increased significantly year on year, compared to the 5.1% achieved during the equivalent period of 2014. The latest figure represents a three-year high for the company.
