Following two consecutive quarters of large losses, Volvo Construction Equipment saw a huge increase in profit during the second quarter, mainly supported by increased sales in North America.
Sales increased to 15.4 billion SEK ($1.8 billion), up 5 percent over 2Q 2014. Meanwhile, profit rocketed upward 80 percent to 1.35 billion SEK ($157 million).
Volvo CE’s first quarter earnings were significantly dinged by low sales in Asia. During the second quarter however, the company was helped by a 5-percent sales increase in Asia to 5.1 billion SEK ($592 million).
But most of the company’s success in the quarter was due to a 30-percent jump in sales in North America to 3.8 billion SEK ($443 million). You can see full sales figures in the image below.
“The second quarter saw Volvo CE continue its targeted sales activities and the implementation of the restructuring program we launched in 2014,” said Volvo Construction Equipment president Martin Weissburg.
“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 program, favorable product mix and positive currency effects.”