Volvo CE sees boost in sales, orders and machine deliveries in Q3
Improving customer sentiment in the wake of the COVID-19 outbreak saw demand for construction equipment and services recover strongly in the third quarter of 2020, particularly in China, helping Volvo Construction Equipment post improvements in sales, orders and machine deliveries in the period.
While net sales in the third quarter decreased by 2% to SEK 17,619 M (17,921), when adjusted for currency movements they were up 6% in the period. Adjusted operating income was also slightly down, at SEK 1,963 M, compared to SEK 2,180 M in the corresponding period in 2019. This equated to an operating margin of 11.1% (12.2%). Net order intake in the third quarter increased by 40% compared with the same quarter in 2019. Deliveries increased by 20%, to 19,774 machines, in the third quarter, mainly driven by higher sales in China.
Most markets recovered well from the effects of the pandemic in the third quarter, with machine utilization at the end of the period at almost 2019 levels. That said, the ongoing uncertainty created by the pandemic weighed on the European market, which up to the end of August was down by 19%. The North American market was also down by 19%, while South America was up 11%, albeit from very low levels in 2019. In Asia (excluding China), the total market was down 13%. The Chinese market recovered strongly from the impact of the pandemic, driven by government stimulus measures, prompting an increase in demand of 22% in the period.
"After the sharp COVID-19 triggered downturn of Q2 we saw construction activity gradually improve across most markets in the third quarter," commented Melker Jernberg, President of Volvo CE. "Demand was particularly strong in China, the world's biggest market, and here we continued to grow our market share. With continuing uncertainty due to the ongoing spread of the pandemic, we will maintain a tight focus on cost control, and prioritize the health and safety of colleagues, customers and business partners."
As one of the latest models in the R2-Series excavator lineup, the Bobcat® E88 delivers durability, performance and quality for more productivity. Technically speaking, it's a compact machine, but it brings big performance with its redesigned engine and optimized lift performance, plus undercarriage and counterweight improvements. All these enhancements make this excavator one of the highest-performing models in its size class. With impressive over-the-side lift capacity, you can dig with greater confidence over the side of the machine. Put it to the test against similar models from other manufacturers. You'll see that the E88 can outwork the competition.