Sharp rise in Q3 sales for Volvo CE
VOLVO Construction Equipment recorded a strong performance in the third quarter of 2010 with net sales rising by 55% to SEK12,710 million (2009: SEK8,176 million) during the period. Orders were also substantially up, with the value of the order book at 30 September 2010 being 81% higher than on the same date in 2009.
This positive news was also reflected in operating income, with Volvo CE enjoying a substantial recovery to SEK1,330 million in the third quarter, compared with a loss of SEK787 million in the same period the year before.
Likewise, there was also a complete turnaround in operating margin, which was 10.5% in the third quarter compared with a negative 9.6% in the same period of 2009.
‘We are seeing sales increases in all markets, led by a recovery in mature markets and continued strong demand in emerging economies,’ said Olof Persson, president and chief executive of Volvo CE. ‘Profitability has improved as a result of higher sales volumes, strict control over costs as well as better capacity utilization and productivity in our industrial systems.’
Measured in units, the total world market for heavy, compact and road machinery equipment increased by 31% in the third quarter of 2010. This was strongly driven by growth in the BRIC markets of Brazil, Russia, India and China, which together rose by 44% during the period.
In Europe the market rose by 16%, while North America and Asia saw increases of 25% and 29% respectively. Other international markets saw an increase of 57%.
The outlook for the full year is expected to see the European market rise by 10%, while North America is expected to increase by between 5–10%. Asian and international markets are both expected to increase by 50% this year, up from previous forecasts that predicted that Asia would rise by between 30–40% and international markets by 40%.
This positive news was also reflected in operating income, with Volvo CE enjoying a substantial recovery to SEK1,330 million in the third quarter, compared with a loss of SEK787 million in the same period the year before.
Likewise, there was also a complete turnaround in operating margin, which was 10.5% in the third quarter compared with a negative 9.6% in the same period of 2009.
‘We are seeing sales increases in all markets, led by a recovery in mature markets and continued strong demand in emerging economies,’ said Olof Persson, president and chief executive of Volvo CE. ‘Profitability has improved as a result of higher sales volumes, strict control over costs as well as better capacity utilization and productivity in our industrial systems.’
Measured in units, the total world market for heavy, compact and road machinery equipment increased by 31% in the third quarter of 2010. This was strongly driven by growth in the BRIC markets of Brazil, Russia, India and China, which together rose by 44% during the period.
In Europe the market rose by 16%, while North America and Asia saw increases of 25% and 29% respectively. Other international markets saw an increase of 57%.
The outlook for the full year is expected to see the European market rise by 10%, while North America is expected to increase by between 5–10%. Asian and international markets are both expected to increase by 50% this year, up from previous forecasts that predicted that Asia would rise by between 30–40% and international markets by 40%.
