Products Center
More Products

Rebound in activity boosts Volvo Construction Equipment in Q3

October 17, 2020

Improving customer sentiment in the wake of the Covid-19 outbreak saw demand for construction equipment and services recover strongly in the third quarter of 2020, particularly in China, helping Volvo Construction Equipment (Volvo CE) post improvements in sales, orders and machine deliveries in the period. 
While net sales in the third quarter decreased by 2% to SEK 17,619 M (17,921), when adjusted for currency movements they were up 6% in the period. Adjusted operating income was also slightly down, at SEK 1,963 M, compared to SEK 2,180 M in the corresponding period in 2019. This equated to an operating margin of 11.1% (12.2%). 

Net order intake in the third quarter increased by 40% compared with the same quarter in 2019. Deliveries increased by 20%, to 19,774 machines, in the third quarter, mainly driven by higher sales in China.

Market development

Most markets recovered well from the effects of the Covid-19 pandemic in the third quarter, with machine utilization at the end of the period at almost 2019 levels. That said, the ongoing uncertainty created by the pandemic weighed on the European market, which up to the end of August was down by 19%.

The North American market was also down by 19%, while South America was up 11%, albeit from very low levels in 2019. In Asia (excluding China), the total market was down 13%. The Chinese market recovered strongly from the impact of the pandemic, driven by government stimulus measures, prompting an increase in demand of 22% in the period.

“After the sharp Covid-19 triggered downturn of Q2 we saw construction activity gradually improve across most markets in the third quarter,” commented Melker Jernberg, President of Volvo CE. “Demand was particularly strong in China, the world’s biggest market, and here we continued to grow our market share. With continuing uncertainty due to the ongoing spread of the pandemic, we will maintain a tight focus on cost control, and prioritize the health and safety of colleagues, customers and business partners.”

Important events

In line with the company’s policy of concentrating on core product groups, Volvo CE divested its North American Blaw-Knox Paver range during the third quarter. It also announced that the first deliveries of its all-electric compact machines would begin in UK, France and Germany in the coming weeks.

Volvo CE - Press release - Rebound in activity_02

Table 1. Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona (SEK).

Featured

more
Nuohao NKH135 Methanol Extended Range Wide-body Vehicle | Heavy-duty, High-efficiency, Worry-free Climbing Green Mine Tool

Nuohao NKH135 Methanol Extended Range Wide-body Vehicle | Heavy-duty, High-efficiency, Worry-free Climbing Green Mine Tool

  On the vast open-pit coal mines in Inner Mongolia,NKH135 mine car with its excellent performance and efficient operation ability,Become a beautiful scenery in the mining area.。The drivers praised one after another.:“This car works

Volvo's profitability was solid in the third quarter, trucks launched a new generation of safety systems, and construction equipment won China's Golden Wrench Award.

Volvo's profitability was solid in the third quarter, trucks launched a new generation of safety systems, and construction equipment won China's Golden Wrench Award.

01 Volvo Group Releases Third Quarter Report for 2024 Volvo Group Officially Announces Third Quarter Results for 2024。Market demand tends to be stable,Profitability remains robust。   Third quarter of 2024,Volvo Group in many r

Sany Double Eleven Carnival Feast, the highest purchase of the machine is immediately reduced by 15 thousand.

Sany Double Eleven Carnival Feast, the highest purchase of the machine is immediately reduced by 15 thousand.

Sanyi Double Eleven Carnival Feast,The purchase of the machine can be reduced by 15 thousand yuan immediately.,Miss waiting for a year! Xiang yuan 11.4 Golden Egg Smashing Activity Superimposed Enjoyment,Up to 10,000 yuan discount prize waiting for

Building the Foundation with Ingenuity and Controlling the Future with Wisdom Taixin Machinery Attends the Annual Meeting of Pile Workers to Discuss the Global Market Expansion

Building the Foundation with Ingenuity and Controlling the Future with Wisdom Taixin Machinery Attends the Annual Meeting of Pile Workers to Discuss the Global Market Expansion

Jiangsu Taixin Machinery Co Ltd(Hereinafter referred to as“Taixin Machinery”)As the director unit of Piling Machinery Branch of China Construction Machinery Industry Association,Actively participated in the third and fourth member congresse

Construction Machinery Online

Language Options

E-Mail: alina@global-ce.com TEL: 0086-10-84673349 FAX: 0086-10-84673349
Site: International - China - U.S.A - Russia - France - Spain - Portugal - India - Germany - Saudi Arabia - Indonesia

Copyright Notice 2002-2024 global-ce.com Construction Machinery Online. All rights reserved.

Address: Room 901, Building C, Ruipu Mansion, Hongjunying South Road No.15, Chaoyang District, Beijing.100107 P.R.China