Volvo CE sales surge 51 percent in first quarter
VOLVO CE have announced a significant improvement in both sales and income during the first quarter of 2010, as the world market for heavy, compact and road machinery equipment increased by 30% between January to March, compared with the same period in 2009.
The company’s net sales in the first quarter were driven strongly by surges in demand in Asia and South America, rising 36% to SEK11,148 million (£1.01 billion) up from SEK8,172 million (£739 million). But when adjusted for currency movements, Volvo CE say this ‘out-performance’ of the wider market increased further, to 51%.
Buoyed by higher volumes, combined with lower costs and increased capacity utilization, the company’s operating profit increased to SEK1,006 million (£91 million), up from a loss of SEK1,395million (£126.2 million) in the same period last year.
Volvo CE say the prospects for the rest of the year will improve. Despite falls in the first three months, both Europe and North America are expected to grow by 0-10% during 2010, while Asia and other markets are both forecast to be up 20%.
President and chief executive Olof Persson commented: ‘Following a difficult 2009, Volvo Construction Equipment have made a strong start to 2010. We have been particularly successful in developing our business in China, demonstrated by our results in Asia growing by 114% during the first quarter.
‘With a global economy that is returning to growth, our established customer relationships and our competitive products and services, Volvo Construction Equipment has every reason to be optimistic about the future.’
The company’s net sales in the first quarter were driven strongly by surges in demand in Asia and South America, rising 36% to SEK11,148 million (£1.01 billion) up from SEK8,172 million (£739 million). But when adjusted for currency movements, Volvo CE say this ‘out-performance’ of the wider market increased further, to 51%.
Buoyed by higher volumes, combined with lower costs and increased capacity utilization, the company’s operating profit increased to SEK1,006 million (£91 million), up from a loss of SEK1,395million (£126.2 million) in the same period last year.
Volvo CE say the prospects for the rest of the year will improve. Despite falls in the first three months, both Europe and North America are expected to grow by 0-10% during 2010, while Asia and other markets are both forecast to be up 20%.
President and chief executive Olof Persson commented: ‘Following a difficult 2009, Volvo Construction Equipment have made a strong start to 2010. We have been particularly successful in developing our business in China, demonstrated by our results in Asia growing by 114% during the first quarter.
‘With a global economy that is returning to growth, our established customer relationships and our competitive products and services, Volvo Construction Equipment has every reason to be optimistic about the future.’
