Volvo CE sales fall –36,7%
By Chris Sleight08 February 2010
Volvo Construction Equipment's sales for 2009 were SEK 35,7 billion (€ 3,48 billion), a -36,7% fall on the 2008 figure of SEK 56,3 billion (€ 5,50 billion). The division made an operating loss of SEK 4,01 billion (€ 391 million) in 2009, compared to the previous year's profit of SEK 1,81 billion (€ 177 million).
Volvo says that the global market for construction equipment fell -39% in 2009. In unit terms its own sales fell -39,1% from 63641 units in 2008 to 38783 units last year. Unit sales falling more heavily than revenues implies that sales of lighter (lower cost) construction equipment was hit more heavily than large, high-cost machines.
Looking ahead to this year the company said, "Market conditions for 2010 are expected to remain soft in Europe and North America, with a growth of 0% to +10% from historically low levels. Asia is expected to grow between +10% to +20% with a growth in China of about +20%. Other markets are expected to grow +10% to +20%."
The company went on to say that with the exception of Brazil, China and Korea, government stimulus spending has not yet had any significant positive impact on the construction equipment industry.
It concluded, " In very tough market conditions Volvo CE has been able to defend the market shares in most of the markets thanks to a strong dealer network and world class products."