Weaker sales, especially in the mining industry, were responsbile for lower than expected results, said Volvo Construction Equipment as it released its  second quarter results.
But positives during the period included operating margin significantly improved compared to the first quarter, signs of stability in the key Chinese market and the launch of its SDLG brand into North America, according to the company.
Reflecting the continued slowdown in the size of the total market for construction equipment, Volvo Construction Equipment (Volvo CE) saw a reduction in its second quarter 2013 results, with sales down 19% during the period.
Behind the headline figures there were underlying positives, not least a good order intake and improving trends in China, Europe and the Middle East.
And despite the lower sales, thanks to cost and inventory control measures, the company’s operating margin more than doubled compared to the first quarter of 2013.
Net sales in the second quarter decreased by 19%, amounting to 16m Swedish Krona ($2.5bn).
Adjusted for currency movements. net sales decreased by 14%. Operating income also dropped to 1.3bn Swedish Krona ($202m) – down 51%Â on the same period in 2012.
Operating margin, at 8.3%, although down compared to the 13.9% achieved in same period last year (due to lower sales in the higher margin mining sector), more than doubled compated to the first quarter of 2013.
Despite the weaker market conditions, the value of Volvo CE’s order book at the end of the second quarter was nearly at the same level as the year earlier period.
