Volvo Construction Equipment has seen positive 2Q15 financial results despite major difficulties in its principal markets. Favourable currency developments and product mix as well as ongoing efficiency measures are reported to have contributed to Volvo’s results.
Despite economic obstacles in its key markets such as a 24% decrease in deliveries (mainly due to lower demand in China and Russia), the company achieved a 5% increase in sales and attained its best profit margins in three years.
“The second quarter saw Volvo CE continue its targeted sales activities and the implementation of the restructuring programme we launched in 2014,” commented Martin Weissburg, President of Volvo Construction Equipment. “With the exception of North America, demand was down across-the-board, resulting in a decline in equipment deliveries by almost a quarter. That said, our products are well received by the market and operating margin improved significantly during the quarter to 8.8%, thanks to the efficiency programme, favourable product mix and positive currency effects.”
2Q15 net sales increased by 5%, reaching SEK 15 219 million compared to SEK 14 624 million in 2Q14. Operating income rose by 80% to SEK 1353 million from SEK 751 million in 2Q14. The company’s operation margin was up from 5.1% in 2Q14 to 8.8% in 2Q15 – marking a three-year high. Currency exchange rates have had a positive impact of SEK 427 million on operating income.
Edited from press release by Harleigh Hobbs