Sales down in China, but up overall for Volvo CE
By Andy Brown21 October 2021
Volvo Construction Equipment (Volvo CE) has reported an 11% increase in net sales in the third quarter of 202.
Net sales in the third quarter increased by 11% to SEK19.638 billion (US$2.28 billion) from SEK17.619 billion (US$2.05) in the third quarter of 2020. Service sales increased by 13%, reflecting Volvo CE’s increased focus on services.
This overall growth occurred despite a dip in sales in China – after several years of high demand for construction equipment in China, orders in the market declined by 26% as reduced government investments led to lower construction activity.
The decline in China was more than offset by strong sales in Europe, North America and other parts of the world, including other areas of Asia, such as South Korea.
Volvo CE – which recently launched three new electric compact machines – added that order intake remains stable on a high level. However, continuing uncertainty across market forecasts remains significant due to the inability to predict supply chain capacity and the ongoing Covid-19 pandemic.
“Despite industry-wide challenges of supply and delivery constraints, the power of Volvo CE as a truly global leader is clear to see in today’s quarterly results,” said Melker Jernberg, President of Volvo CE.
“While sales in China have dipped, the strength of sales in other regions has ensured we have remained at peak performance. This quarter has also demonstrated our leading focus on sustainable power, with several exciting launches and events, ensuring we keep a strong focus on building a brighter future.”