Volvo CE confident of sustained recovery in US
Company in good position to capitalize on improving market conditions in North America, says Pat Olney
HAVING posted a 111% increase in like-for-like sales in the first quarter of the year, Volvo Construction Equipment have reiterated their belief in a North American recovery that could see demand jump by up to a quarter during 2012.
Pat Olney, the company’s president and CEO, used a press conference in Miami earlier this month to confirm his belief that the recovery in the North American construction equipment market is gathering momentum.
His comments, to a group of leading business journalists attending an event on sustainability during the Miami stopover of the Volvo Ocean Race, came shortly after the company posted a 111% rise in North American revenues in the first quarter of 2012.
‘Demand for construction equipment in North America jumped 35% during the first three months of the year,’ said Mr Olney. ‘This shows us that the recovery that began last year is gathering pace and that our earlier forecast of a 15–25% year-on-year improvement for 2012 is attainable.’
Volvo CE’s North American performance during the quarter helped the company to a 17% increase in global net sales and to post record levels of profitability for a first quarter.
‘Volvo CE is in a good position to capitalize on improving market conditions in North America,’ added Mr Olney. ‘We are outperforming the market conditions by offering a young fleet of innovative products tailored to meet the needs of specific customer groups, combined with a strong and loyal distribution network and a substantial investment programme.’
As previously announced, Volvo CE are spending US$100 million in a product and manufacturing expansion programme at their North American facilities. This includes development of the company’s facility in Shippensburg to accommodate the production of Volvo wheel loaders, excavators and articulated haulers – adding 16 new machines to the 50 road machinery products already produced at the plant.
‘After a protracted downturn we have every confidence that the North American market is well on the road to recovery,’ said Mr Olney. ‘We are continuing to invest throughout the business cycle in our people, our production facilities and distribution networks.
‘With a technologically advanced fleet of innovative – and award-winning – products, we have made a strong commitment to the Americas and regard it as a home market for the company.’
