Volvo forecasts positive outlook despite increasing oil and steel prices

Volvo Construction Equipment (Volvo CE) is well positioned to benefit from the continued strong growth of countries such as Brazil, Russia, India and China, according to the company's president and chief executive, Tony Helsham.

Mr Helsham said: "Although growth has slowed in North America and Europe we still see over two thirds of the global construction equipment industry continuing to expand. Because of this I believe the industry has a much more positive outlook than it would have had at a similar point in previous business cycles."

He added after more than 15 years the company is now also seeing opportunities for growth in Africa.

The addition of the company's new road machinery range and the introduction of the acquired low cost range of Chinese-made SDLG wheel loaders for emerging economies, will allow Volvo to capitalise on the continued growth in these markets, Mr Helsham said.

"These product additions to our offering open up a new customer base and are destined to be transformational for Volvo CE's business as a whole," he added.

Volvo CE sales and profits have quadrupled during the last two cycles and the product range, market share and geographic reach have also expanded.

However, Mr Helsham said, "There are dangers out there. Oil and steel cost increases are putting pressure on us to increase prices on our products."

He added, "After years of struggling to keep up with extraordinary growth we as an industry should use this period of relative calm to consolidate our gains and concentrate on improving operational efficiency."