Volvo CE sales up 34% in Q3

Image credit: Volvo CE

This saw sales in the period up 34% (11 539 machines), order intake was up 45% and deliveries up 48% (14 431 machines), as well as a strong improvement in profitability.

Adjusted for currency movements, net sales in the third quarter increased by 34% to SEK15.091-million (Swedish Krona), while operating income was up 237% to SEK2.024-million, from SEK601-million in 2016. This represented a significant step up in operating margin, to 13.4% (from 5.2%).

Profitability was positively impacted by higher sales, improved capacity utilisation in the industrial system and a gain from the sale of Volvo CE’s dealership in Great Britain.

Net order intake in the third quarter increased by 45% compared with the same quarter in 2016, largely driven by higher intake from China, as well as growth in other Asian markets and Russia.

Up to the end of August the European market was up 15%, driven by the growth in the UK, France and Italy, while the recovering Russian market up 101%. North America was 7% and South America 6% above 2016. The total market in Asia (excluding China) is up 12% from last year, while the Chinese market is up 74%.

“This is an especially strong performance. Volvo CE has responded well to the growing demand, with volume increases up 48%, while at the same time taking a significant step up in profitability,” says Volvo CE president Martin Weissburg. “We also continue to gain market share within our product and market strongholds.” 

Volvo CE net sales by market area, in millions of Swedish Krona (SEK)Volvo_CE

Image credit: Volvo CE

13 Dec 2017

By Robyn Grimsley
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