Volvo Construction Equipment experienced a dip in business during the third quarter of 2013.
From July to September, sales were 7% lower than those achieved in the same period of last year.
The company cited weak demand and unfavourable currency development as two of the major reasons behind this drop in revenue. Reduced sales, it contends, are a reflection of a general downward trend in market.
Reduced activity in the global mining industry negatively impacted the sales of Volvo CE’s larger and more expensive products. It seems that in the current market, fewer organisations are in the position to buy new heavy machinery.
Whilst market conditions for the full year 2013 offer scant hope of a short-term revival, Volvo CE remains in buoyant mood. Effective cost-control and inventory management strategies, it claims, have helped to minimise the adverse effects of the lacklustre market.
“While there is still no clear sign of a global market recovery in the construction equipment sector, we did see an uptick in China, driven by sales of smaller equipment, and a slight increase in the European market,” said Pat Olney, president of Volvo CE. “Our base scenario for 2014 is that the markets will remain at largely the same level as we have seen in 2013.”
The manufacturer stated that its outlook is unlikely to change in the immediate future.
