Volvo Construction Equipment (CE) saw its sales increase by 30% in the first quarter of 2017, buoyed by improving market conditions and the positive impact of an internal transformation programme.
During the first three months of 2017, Volvo CE’s net sales were $1.84bn, an increase of 30% on the $1.41bn figure posted in Q1 2016.
Volvo’s operating income of $184m for the quarter was also up significantly compared to its $39m in Q1 2016 – with an operating margin of 10% compared to 2.7% for the same period the year before.
The results were helped by improving market conditions for Volvo CE in every region except South America and were accompanied by a rise in order intake and deliveries in the first quarter of 2017.
The Q1 order intake rose by 34% year-on-year to 17, 487 machines, with increases in orders coming from all markets, while deliveries were also up 34% during the period, to 16,369 machines.
Martin Weissburg, president of Volvo CE, said: “After years of tough market conditions, the Volvo CE business is growing again. Higher sales volumes linked with increased internal efficiency and a lower cost base helped us deliver good profitability levels during the quarter.
“Volvo CE is on the right track, the improvement plan is yielding results and there are further opportunities to improve the long-term competitiveness of the company.”
Across the globe, the European market was up by 17% in Q1 2017, driven by increased demand in Germany, the UK and France, while the market in Asia (excluding China) was up by 10% on last year.
China, meanwhile, has continued to recover, with the market growing by 48% in Q1, driven by a surge in demand for excavators, which increased by 99% during the period.
Demand contracted slightly, however, in both Turkey and the Middle East.
