Volvo CE has released its results for the first quarter of 2016, revealing its sales and profits have remained steady in the face of challenging global market conditions.
The company’s net sales fell 2% to SEK 12.45 billion (US$ 1.53 billion), while operating income was marginally down at SEK 341 million ($ 41.9 million), compared with SEK 352 million ($ 43.2 million) in Q1 of 2015.
Operating margin was also maintained, according to the new figures, standing at 2.7%, compared with 2.8% in the same period in 2015.
Volvo said it had seen ‘increased momentum’ in the Chinese market, combined with stable sales from the US and a strengthening European market, driven largely by France, where demand, it said, has leapt 55%.
These factors, Volvo stated, were helping to offset slowdowns in Russia, the Middle East and, significantly, in Latin America, where demand fell by 40%, due to the country’s ongoing economic difficulties.
Volvo CE’s president, Martin Weissburg, said, “Thanks to a strong focus on profitable product segments and markets we achieved similar results as in the first quarter of last year.”
He added, “Our market share continues to increase in the heavy machine segment and the introduction of larger articulated haulers and excavators will generate significant productivity gains for customers and allow Volvo CE to enter new segments.”