Volvo returns to profit

Volvo Construction Equipment's (Volvo CE) sales for the first quarter of 2010 rose +36% to SEK 11.1 billion (US$ 1.5 billion), up from SEK 8.1 billion (US$ 1.1 billion) for the same period last year.

While sales in North America slipped -23% from SEK 1.7 billion (US$ 249 million) to SEK 1.3 billion (US$ 192 million), sales in Europe remained static at SEK 3 billion (US$ 428 million) and all other regions recorded double or triple digit growth.

Sales in Asia rose +114% to SEK 5.2 billion (US$ 732 million), up from SEK 2.4 billion (US$ 342 million) 12 months ago, while in South America sales jumped +106% to SEK 801 million (US$ 111 million), up from SEK 388 million (US$ 54 million).

President and CEO, Olof Persson said, "Following a difficult 2009 Volvo Construction Equipment has made a strong start to 2010. We have been particularly successful in developing our business in China, demonstrated by our +114% growth in sales in Asia during the first quarter.

"With a global economy that is returning to growth, Volvo has every reason to be optimistic about the future," he said.