Volvo CE Hikes Revenue 36 Percent Year over Year in Second Quarter
Driven by improvements in most major markets, Volvo Construction Equipment reported net sales in the second quarter of 2017 increased by more than a third, rising 35.8 percent compared to the same period in 2016. Good cost control as volumes return also resulted in a significant improvement in profitability.
In the second quarter, Volvo’s revenue was SEKM 18,511 (about U.S. $2.24 billion) compared to SEKM 13,630 in Q216. North America revenue increased from SEKM 3,178 to SEKM 3,799, a 19.5-percent leap. In South America, revenue jumped from SEKM 309 to SEKM 396, a 28.1-percent leap. In Europe, revenue climbed 17.8 percent from SEKM 5,696 to SEKM 6,709. Asia revenue soared from 3,693 SEKM in Q216 to SEKM 6,506 this year, a 76.1-percent climb, with 65 percent coming from China. Africa and Oceania also showed a huge improvement from SEKM 754 to SEKM 1,101, a 46-percent leap.
The second quarter 2017 also saw order intake increase by 54 percent, while deliveries in the period were up 49 percent, at 17,472 machines. Order intake in China was particularly strong, rising by 221 percent, driven by increased demand for SDLG wheel loaders and SDLG and Volvo excavators.
“Demand for construction equipment continues to improve in Europe and China, and also a clear recovery in the mining segment in many parts of the world,” commented Martin Weissburg, president of Volvo Construction Equipment. “Thanks to Volvo CE keeping tight control over costs as volumes return, these increased sales have resulted in a significant improvement in profitability. In general, Volvo CE has competitive products and services, with good positions in key markets. We will continue to focus on core products and segments, continuous improvement, lowering costs and improving quality.”
For the first six months of the year, Volvo CE revenue jumped from SEKM 26,082 last year to SEKM 34,673, a 32.9-percent increase.
