Volvo CE is maintaining its strong financial position, while ensuring it will be ready to meet and beat targets for sustainability in the future.
The company says that it has seen a good performance for the last quarter, despite lower deliveries, down by 27%, due primarily to the market decline in China. Net order intake has also declined by 42% in the last quarter due to the drop in demand in China, as well as because of a drop following the spike in orders experienced during the same quarter 2021.
The downturn in sales in China has however been compensated by growth in the rest of the world. In the second quarter of, 2022, total net sales were flat at e2.461 billion compared with e2.464 billion for the same period in 2021. The firm says that sales remained steady due to market variations which saw sales increase by 28% in North America and 121% in South America. However, sales did drop slightly in the larger markets of Europe by -2% and in Asia by -24%. Meanwhile, service sales continued to rise seeing an increase of 5%, although net sales of machines declined by 11%.
The development of zero emissions construction machines is a key target for Volvo CE. Melker Jernberg, president of Volvo CE, said: “Thanks to the hard work of our colleagues and supply chain partners, we are enjoying a confident performance with solid sales on a par with last year. With our dedication to expanding our electromobility offering and taking action to place more sustainable construction solutions into the hands of our customers, we not only remain strong in the face of an unpredictable global outlook but are geared for growth.”
Volvo CE is investing heavily in developing electric construction machinery solutions. The firm has also commenced testing of its innovative hydrogen-fuelled articulated dumptruck.
Construction activity in most markets has remained on good levels, driven by both the commercial sector and the ongoing investments in infrastructure. While the Chinese market declined due to lower economic activity and pricing pressures, Asia outside of China instead saw strong growth in key markets supported by government stimulus and high commodity prices. There is a continued need to renew and expand an aging infrastructure in many countries across the world, with the South American market remaining on a favorable trend with demand for commodities on a high level. While construction activity in both Europe and North America remained high in Q2, total market deliveries were impacted by limited machine availability because of supply chain constraints.
