Good performance for Volvo CE at the end of 2016

In the fourth quarter of 2016, Volvo Construction Equipment saw its turnover increase by 20%. The manufacturer has gained market share, particularly in the heavy machinery segment.

In the fourth quarter of 2016, Volvo CE’s turnover was up 20%, operating income up 3.8% and earnings improved thanks to a favorable product mix, higher sales volumes and higher operating expenses. Reduced operating costs. For the full year, revenues decreased by 1%, operating income rose to an operating margin of 4.4%.

Europe recorded an increase in orders of 46%, with a significant increase in Volvo CE’s activity everywhere, including in Russia, and across all product segments. North America has seen its orders increase by 35% since 2015, as is Asia (+ 29%) driven by the numerous orders for excavators in China and by India, where strong market growth continues. Also note the increase in sales of SDLG machines in China and Southeast Asia.

In November 2016, the European market grew by 9% thanks to a strong recovery in the French market and considerable growth in Germany and Italy, while the United Kingdom slowed down. The Russian market is recovering, the North American market falls by 2%, a direct consequence of the decline in interest for large equipment. However, the market for compact equipment is doing well, especially the mini excavator. Brazil (-44%) and Asia (-5%) are down, but China is up 3%.

Global demand for equipment was sluggish in 2016. Signs of progress are emerging in Asia, however. Volvo CE reports growth in the shovel, loader and tipper segments.