After experiencing a steep decrease in demand through the first half of 2020, Volvo Construction Equipment has shown a rebound towards the end of the year, with improvements for both sales and operating income through the fourth quarter.
Net sales for Volvo CE increased by six percent in Q4 of 2020, reaching SEK 20,810 million. The company reported an operating income of SEK 2,321 million, for an operating margin of 11.2 percent.
Full year net sales showed a decrease of 8 percent, to SEK 81,453 million, while the full year adjusted operating income was down to SEK 10,071 million, an operating margin of 12.4 percent.
"In 2020 the global pandemic presented us with challenges that are unprecedented in modern times," said Melker Jernberg, president of Volvo Construction Equipment. "But together with business partners and suppliers we were able to support customers through all stages of the crisis. Construction activity is now back on a par with pre-pandemic levels, and this is giving confidence to customers, which is visible in our strong order intake."
Orders and deliveries through the fourth quarter showed some solid movement for Volvo CE; net order intake increased by 31 percent, driven by improving activity in most markets and dealer restocking. North America showed a decline of 18 percent, but that number was compared to the record order intakes received in that period of 2019. Boosted by high volumes in China, where government incentives helped push sales, deliveries increased by 21 percent through the fourth quarter.
Volvo CE also began delivering its electric compact wheel loaders and compact excavators during the fourth quarter.