Volvo Construction Equipment has announced that net sales for the third quarter of 2015 were down -6%. The company cited deceleration in global demand as the cause.
The fall equates to SEK 11.9 billion (US$ 1.40 billion), compared with the SEK 12.6 billion (US$ 1,48 billion) drop in the same period last year, and the company said it has at least partially offset the negative with growth in its share of the market for larger machines.
Volvo CE president, Martin Weissburg, said, “Despite volumes being down by -25% during the period, our targeted sales activities and ongoing efficiency program helped to deliver positive operating income and market share gains in the segments for larger machines.”
Earnings were reportedly assisted by favourable currency movements and improvements in gross margins, due to the firm’s enhanced product mix and efforts to lower operating expenses.
While, from a global perspective, Volvo CE’s net order intake was dramatically down on the same period last year (-34%), a region-by-region view illustrates that sharp declines in the economies of Russia and Brazil overshadow somewhat healthier markets in Europe and North America.
Excluding Russia, Volvo CE’s net order intake from European markets was +8% higher than in the same period last year.
While the order intake in North America was down by -25%, results for large machines slipped by just -1%.
Additionally, the company reported that while earnings were down in China, due to lower sales, this was in part offset by favourable currency movements. It also pointed out that its earlier announced efficiency programme was running on schedule.