Volvo Construction Equipment says its second quarter 2017 net sales grew by 36 percent compared to the same quarter last year, to 18.51 billion Swedish Krona (SEK) ($2.23 billion).
For the first half of 2017, the company’s net sales total of 34.67 billion SEK ($417.3 million), an increase of 32.9 percent compared to the first half of last year.
Operating income for the quarter, the company reports, increased by more than three times to 2.46 billion SEK ($296.95 million) from 810 million SEK ($97.77 million) in the same period in 2016, resulting in an operating margin of 13.3 percent.
Volvo also reports second quarter order intake increased 54 percent, with deliveries growing 49 percent to 17,472 machines. China led with an increase of 221 percent in order intakes led by SDLG wheel loads and SDLG and Volvo excavators.
“Demand for construction equipment continues to improve in Europe and China, and also a clear recovery in the mining segment in many parts of the world,” says Volvo CE President Martin Weissburg. “Thanks to Volvo CE keeping tight control over costs as volumes return, these increased sales have resulted in a significant improvement in profitability. In general, Volvo CE has competitive products and services, with good positions in key markets. We will continue to focus on core products and segments, continuous improvement, lowering costs and improving quality.”
Demand increased in China by 65 percent, Europe by 14 percent, Asia (excluding China) by 8 percent, and North and South America by 4 percent.