Strong end to 2010 for Volvo CE
Year ends with record number of machines sold, strong order book and high levels of profitability
ANNOUNCING their fourth-quarter and full-year results, Volvo Construction Equipment reported a sharp increase in sales and profitability in 2010, amid improving conditions for the industry as a whole. The company also increased unit sales by 70% – selling an all-time-high of 66,000 machines during the year.
Boosted by a strong set of fourth-quarter results, for the full-year 2010 Volvo CE’s sales increased by 51% to SEK 53.8 billion (£5.2 billion), compared with SEK 35.6 billion (£3.4 billion) in 2009. Operating income leapt to SEK 6.18 billion (£597 million), up from a loss of SEK 4.0 billion (387 million) the preceding year, and operating margin also improved considerably, up to 11.5% in 2010 compared with a negative margin of 11.2% in 2009.
Volvo CE’s order book also remained strong, with a total value on 31 December 2010 some 45% higher than on the same date in 2009.
Commenting on the results, Volvo CE chief executive Olof Persson said: ‘We ended 2010 strongly. The gradual improvement in Europe continues and North America is now definitely recovering, at the same time as the emerging economies continue their strong growth.
‘In addition to higher sales, the strong situation we now find ourselves in is also due to internal cost-reduction activities, enhanced cost absorption in the manufacturing system and increased productivity.’
According to Volvo CE, the fourth quarter of 2010 saw the total world market for construction equipment within the company’s product range increase by 31%, compared with the same period in 2009. This was strongly driven by the BRIC countries, which saw an increase of 47%.
In Europe the total market was up by 4%, while North America was up by 31% during the quarter. Asia increased by 39%, strongly influenced by China and India, where the markets increased by 53% and 24% respectively. Other markets were up by 40%, helped by a rapidly recovering Russian economy, which saw a 269% improvement.
For the full year 2010, the total world market increased by 44%, and conditions this year are expected to remain positive with Europe expected to grow by 5–15%, North America by 20–30%, and Brazil, India and China by 5–15%. Demand in Russia expected to double during the year, while other markets are expected to grow by between 5–15%.
ANNOUNCING their fourth-quarter and full-year results, Volvo Construction Equipment reported a sharp increase in sales and profitability in 2010, amid improving conditions for the industry as a whole. The company also increased unit sales by 70% – selling an all-time-high of 66,000 machines during the year.
Boosted by a strong set of fourth-quarter results, for the full-year 2010 Volvo CE’s sales increased by 51% to SEK 53.8 billion (£5.2 billion), compared with SEK 35.6 billion (£3.4 billion) in 2009. Operating income leapt to SEK 6.18 billion (£597 million), up from a loss of SEK 4.0 billion (387 million) the preceding year, and operating margin also improved considerably, up to 11.5% in 2010 compared with a negative margin of 11.2% in 2009.
Volvo CE’s order book also remained strong, with a total value on 31 December 2010 some 45% higher than on the same date in 2009.
Commenting on the results, Volvo CE chief executive Olof Persson said: ‘We ended 2010 strongly. The gradual improvement in Europe continues and North America is now definitely recovering, at the same time as the emerging economies continue their strong growth.
‘In addition to higher sales, the strong situation we now find ourselves in is also due to internal cost-reduction activities, enhanced cost absorption in the manufacturing system and increased productivity.’
According to Volvo CE, the fourth quarter of 2010 saw the total world market for construction equipment within the company’s product range increase by 31%, compared with the same period in 2009. This was strongly driven by the BRIC countries, which saw an increase of 47%.
In Europe the total market was up by 4%, while North America was up by 31% during the quarter. Asia increased by 39%, strongly influenced by China and India, where the markets increased by 53% and 24% respectively. Other markets were up by 40%, helped by a rapidly recovering Russian economy, which saw a 269% improvement.
For the full year 2010, the total world market increased by 44%, and conditions this year are expected to remain positive with Europe expected to grow by 5–15%, North America by 20–30%, and Brazil, India and China by 5–15%. Demand in Russia expected to double during the year, while other markets are expected to grow by between 5–15%.
