Significant market demand increases in all major regions helped propel Volvo Construction Equipment to a strong first quarter 2018, with sales up 30% and profitability up 79%.
Volvo Construction Equipment (Volvo CE) enjoyed a confident first financial quarter of 2018, with strong demand increases in all major markets – especially in Asia – helping the company to report strong growth in sales, profitability and order intake.
During the first three months of 2018 Volvo CE saw net sales jump by 30% to SEK 20,914 M (SEK 16,101 M in Q1 2017). Adjusted for currency movements the results were even better, up 33%. Operating income was also positively impacted, rising to SEK 2,888 M, up a very significant 79% compared to SEK 1,615 M in the first quarter of 2017. Operating margin also saw strong improvement, at 13.8%, compared to 10% in the same period the year before.
In the first quarter of 2018 Volvo CE also enjoyed an increase in order intake, which rose by 37% to 23,938 machines, with increases in orders coming from all markets, but particularly North America and Asia. Deliveries were also up 35% during the period, to 22,102 machines.
Market situation
The construction equipment market continued to improve during the quarter, with all regions showing growth. The European market was up 10%, driven by increased demand in Germany, Italy and parts of Eastern Europe. North America was up 21%, driven mainly by demand for excavators. South America continued to recover from low levels, rising 27%. Asia (excluding China) was up 21% compared to last year, boosted by growth in India, Indonesia, Turkey and the Middle East. Strong demand for large excavators and wheel loaders helped the Chinese market improve by 13% during the quarter.