A combination of competitive products and high demand in most markets saw Volvo Construction Equipment (Volvo CE) report net sales in the second quarter of 2018 that were up by almost a third, rising 32 percent compared to the same period in the year before. Good cost control as volumes return also resulted in strong improvement in profitability.
Net sales in the second quarter increased by 32 percent. Operating income was also strongly up from the same period the year before, equating to an operating margin of 15.1percent.
The second quarter 2018 also saw order intake increase by 41 percent, while deliveries in the period were up 38 percent, at 24,108 machines. Order intake in China was particularly strong, rising by 72 percent, driven by increased demand for SDLG wheel loaders and SDLG and Volvo excavators.
The second quarter of 2018 saw a continuation of the improving demand situation in most major markets. In the year-to-date, Europe is up 8 percent, North America, up 17 percent; and South America, up 28 percent. Asia (excluding China) is up 19 percent, while the Chinese market continues its strong development, rising 47 percent.
“Volvo CE is well invested in strong products and services and a strategy that is serving both our customers and ourselves well,” commented Melker Jernberg, president of the company. “We continue our efforts to improve efficiency across the supply chain, and are moving in the right direction. Finding the balance between investing in new technologies while at the same time maintaining cost consciousness and flexibility will continue to be in focus during the remainder of the year.”