Volvo Construction Equipment posted a 53-percent increase in sales and a 70-percent jump in income, with a record operating margin in the first quarter of 2011. Recoveries in mature markets and sharp increases in emerging countries, as well as internal cost reductions contributed to the improved results.
Volvo’s net sales in North America totaled SEK 1.58 billion (about U.S. $261 million), compared with SEK 1.38 billion for the same period a year ago, a 14-percent hike. Net sales in Europe jumped 30 percent from SEK 3.07 billion in Q110 to SEK 3.98 billion this year (about U.S. $660 million). Net South American sales jumped 13 percent, Asia leapt 60 percent and other markets combined for 36 percent net sales growth.
The company’s net sales totaled SEK 15.76 billion (about U.S. 2.6 billion) for the quarter, a 41-percent increase compared with SEK 11.15 billion in last year’s first quarter.
The company introduced more than 50 models of equipment to its dealers and customers in North America and Europe.