Volvo Construction Equipment (CE) has reported a 10% increase in net sales in its second quarter 2019 results.
The manufacturer, which reported net sales of SEK24,403 million (US$2.6 billion) for the same period in 2018, saw this year’s figure rise to SEK26,814 million (US$2.8 billion).
Operating income reached SEK4,153 million (US$440 million) in the period, continuing its upwards trajectory on last year’s SEK3,675 M (US$390 million) and giving the company an operating margin of 15.5%, compared to 15.1% last year.
The second quarter of 2019 also saw Volvo CE’s order intake increase by 6%, with SDLG branded products increasing by 28%. The company said its order intake was particularly strong in China, which rose 21% as a result of strong demand for SDLG branded excavators and wheeled loaders.
Deliveries were also up 12% in the period, again driven by growth in China and stable demand in Europe and North America.
Melker Jernberg, President of Volvo CE, said, “Volvo CE continued on the path of increased sales and improved profitability in the second quarter.
“Volume flexibility in the industrial system and tight cost control will continue to be in focus in the second half of the year.”
The company’s solid second quarter build on its positive first quarter of 2019, which saw its sale up 15%.
Volvo CE said growth in the European and North American markets, coupled with a strong focus on its service business had resulted in its solid sales, earning and delivery improvements during the year’s second quarter.
In the period up to May, demand for construction equipment in Europe was up 5% compared to the same period in the year before.
While demand for large excavators, road equipment and articulated haulers pushed the North American and South American markets up 7% and 6%, respectively, the Asian market (excluding China) was down 11% on the previous year.
The Chinese market saw demand rise by 8%, which Volvo CE said was thanks to growth in the compact excavator segment.
All figures in US$ are correct as of the date of this article.