Volvo Construction Equipment (Volvo CE) has published its figures for the third quarter of 2020, showing demand recovering strongly.
The company’s latest results show that, while the coronavirus pandemic continues to restrict growth in European and North American markets, a strong rebound in China has helped the company with sales, orders and machine deliveries during the reported period.
Headline Q3 figures include order intake up 40%, deliveries of machines up 20% and adjusted sales up 6%. Volvo CE’s net sales for Q3 actually decreased by 2% (down to SEK17,619 from SEK17,921 in the same period in 2019), but grew by 6% when adjusted for currency movements.
In terms of machine utilisation, the company said it was seeing some recovery across most markets. However, two of its largest markets (Europe and the US) were both down 19%, with Asia (excluding China) also down by 13%.
The strong rise in the Chinese market (with demand up 22%), was bolstered by growth in demand from the South American and African markets.
During the reported period, Volvo CE announced the divestment of its North American Blaw-Knox paver range. It also said it is set to make the first deliveries of its all-electric compact machines to the UK, France and Germany.
Melker Jernberg, president of Volvo CE, said the company was pleased to see construction activity gradually returning in most markets in Q3, following the sharp downturn in Q2, triggered by the Covid-19 outbreak.
He said, “Demand was particularly strong in China, the world’s biggest market, and here we continued to grow our market share,” adding, “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.”