Volvo Construction Equipment posted net sales of SEK 18,598 million (about U.S. $2.07 billion) in the third quarter compared to SEK 15,042 million in the third quarter of 2017, a 23.6-percent year-over-year hike. The strong quarter helped parent company The Volvo Group to its best-ever third quarter results. Strong demand fueled growth, resulting in strong profitability.

     Operating income rose to SEK 2,587 million compared to SEK 2,023 million in the year-ago quarter, a 27.9-percent increase. The operating margin was 13.9 percent, compared to 13.4 percent a year ago, with profitability positively impacted by higher equipment and service sales, improved capacity utilization in the industrial system and good cost control.

     Net order intake in the third quarter increased by 22 percent compared with the same quarter in 2017. The increase was largely driven by higher intake from China, and Europe, which posted a 53 percent order intake leap of 53 percent, thanks in part to large rental orders for compact machines. Orders grew 47 percent in North America, propelled by medium and large machine sales. Overall deliveries increased by 17 percent to 16,861 machines in the third quarter.

     Sales grew 29.1 percent year over year in North America, with strong demand for excavators, haulers, large wheel loaders and road equipment. The European market grew 20 percent, driven by growth in Russia and stable demand in Germany, the U.K., France and Italy. The South American market grew 26 percent, with strong sales in Brazil. Asia grew 22.6 percent, with large growth in China.

     “It is encouraging that we have been able to sustain the strong development of recent quarters, with both sales and profitability being above the levels of last year,” said Melker Jernberg, president of Volvo Construction Equipment. “Good demand in most markets for our range of competitive products helped to deliver yet another strong set of figures.”