Volvo Construction Equipment witnessed a 9% drop in sales during the second quarter of 2014.
Net sales in the months April through June reached $2.14bn this year compared to $2.34bn achieved during the same period of 2013.
The Swedish construction and mining equipment manufacturer has stated that improvements in the North American and European markets were unable to compensate for a sharp downturn in Chinese demand.
“The second quarter was characterised by a considerable decline in China – the world’s largest market for construction equipment – which meant we had to adapt our operations to a lower level,” commented Martin Weissburg, Volvo CE president.
“The decline was rapid and accelerated during the quarter, but we reacted quickly to ensure that production and inventory levels [were] soon balanced with demand,” he added.
Fortunately for Volvo CE, there were a number of positives to be taken from its quarterly report.
Despite the decline in the Chinese market, the manufacturer saw a 25% improvement in North America and an 11% improvement in Europe compared to the same period last year.
Weissburg said: “The situation is brighter in our more mature markets, with demand in Europe and North America continuing to expand during the quarter. We are further strengthening our positions in these markets with our new products.”
Other important events for Volvo CE that took place during Q2 2014 included the previously announced $160mn acquisition of Terex’s hauler business and the inauguration of the firm’s twelfth test and development centre in Hapcheon, South Korea. The period ended with the official opening of a customer centre at the firm’s Pennsylvania facility, part of its $100mn investment in the North American market.
