Volvo CE sees 34% rise in equipment sales in Q3 2017
Volvo Construction Equipment posts strong results for Q3 2017, with a 34% rise in sales, a 45% increase in orders, a 48% rise in deliveries, and improved profitability
Volvo Construction Equipment (Volvo CE) has posted strong results for Q3 2017, with a 34% rise in sales, a 45% increase in order intake and a 48% rise in deliveries, alongside a strong improvement in profitability.
Adjusted for currency movements, net sales in Q3 2017 increased by 34% to $1.85bn, while the company’s operating income rose by 237% to $247m, up from $73.5m in Q3 2016, or corresponding to an operating margin of 13.4%, up from 5.2% in Q3 2016.
The results were driven by market share gains and strong recoveries for Volvo CE in Asia and Russia, and profitability was positively impacted by higher sales, improved capacity utilisation in the supply chain and from the sale of Volvo CE’s UK dealership.
Net order intake increase by 45% in Q3 2017, compared with Q3 2016, driven largely driven by higher intake from China, while deliveries increased by 48% to 14,431 machines.
“This is an especially strong performance. Volvo CE has responded well to the growing demand, with volume increases up 48%, while at the same time taking a significant step up in profitability,” said Martin Weissburg, president of Volvo Construction Equipment.
“We also continue to gain market share within our product and market strongholds.”
The quarter also saw the rollout of Volvo CE’s 75,000th articulated hauler, which rolled off the production line in June 2017 at the same factory where the first DDR631 model was produced.
Volvo CE is responsible for producing more than half the articulated haulers ever made, and about 50,000 of the machines that it has delivered to customers are still in regular use around the world.