Volvo CE Net Sales Strong in Europe in Q2 But Down Elsewhere
Adjusted for currency movements, Volvo Construction Equipment reported a net sales decline of 7 percent in the second quarter of 2016, impacted by lower demand in most markets outside of Europe. Weaker machine sales in China and Brazil were partially offset by higher sales in Europe.
Net sales in the second quarter decreased 12 percent to SEK 13.63 million (about U.S. $1.58 billion), compared to SEK 15.42 million in the second quarter of 2015. Adjusted for currency movements the decline was 7 percent. Operating income was SEK 810 million in the period (about U.S. $94 million), equating to an operating margin of 5.9 percent.
“The second quarter saw Volvo CE improve operating margin compared to the first quarter, despite continuing weak demand in many markets,” said Martin Weissburg, president of Volvo Construction Equipment. “It is encouraging to see that the ongoing internal efficiency program continues to deliver results, and that Volvo CE is gaining market share in the heavy segment, particularly in Europe.”
Net sales in the European market for the second quarter were SEK 5,696 million, compared to SEK 5,108 million in the same period in 2015, an 11.5-percent increase. In North America net sales declined from SEK 3,823 million in Q215 to SEK 3,178 million in the second quarter this year, a 16.9-percent plunge.
For the first six months of 2016, net sales in Europe increased 11.8 percent to SEK 10,263 million. However, in North America, net sales dropped during this period 9.6 percent to SEK 5,783 million.
Sales also declined in South America, Asia, Africa and Oceania during the second quarter and the first six months of 2016.
