Built to inform

Sign up for the daily newsletters

No, Thank you

Volvo CE sees 20% net sales growth in Q4 2016

Volvo CE's net order intake increased by 35% in Q4 2016, as net sales increased by from $1.26bn in 2015 $1.5bn

Volvo showed positive signs of growth in our stronghold segments of excavators, wheel loaders and articulated haulers.
Volvo showed positive signs of growth in our stronghold segments of excavators, wheel loaders and articulated haulers.

Volvo Construction Equipment (CE) increased its net sales by 20% in Q4 2016 as the OEM made market share gains in the larger, more profitable machine segments and net order intake increased by 35%.

In Q4 2016, net sales increased by 20% to $1.5bn, from $1.26bn in 2015. Adjusted operating income amounted to $56.6m, corresponding to an operating margin of 3.8%, compared to a loss of 21.9m in 2015.

Volvo Construction Equipment ended 2016 with a strong performance, with deliveries up by 19% to 10,639 machines and order intake increasing in all markets.

For the full year sales decreased by 1% to $5.8bn, but adjusted operating income increased to $257m, corresponding to an operating margin of 4.4%.

Earnings were positively impacted by a favourable product mix, higher sales volumes and reduced operating expenses, including improved capacity utilisation.

“Global demand for construction equipment was largely flat in 2016,” says Martin Weissberg, president of Volvo Construction Equipment.

“However, Volvo shows positive signs of growth in our stronghold segments of excavators, wheel loaders and articulated haulers. The ongoing work to improve Volvo CE’s competitiveness is yielding results.”

During the fourth quarter a more efficient R&D organisation was also introduced. The company announced that it will fit its in-house produced eight litre engine into its mid-size excavators and wheel loaders, replacing externally sourced engines.

Furthermore, the Volvo CE headquarters will be moved to Gothenburg to facilitate closer cooperation with the Group’s other business areas and operations.

Most popular

Awards

Construction industry conversations around digitisation must evolve
The Middle East construction industry’s approach to tech must evolve and focus on how can

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 753
Nov 09, 2019