Despite a 26% decrease in orders in China, Volvo Construction Equipment reports an 11% increase in net sales in the third quarter compared to the same period last year.
Reduced government investments led to lower construction activity in China, sparking a sudden decline.
The rest of the world saw strong growth, prompted by high infrastructure investments and housing construction activity. North American sales increased 27% to SEK 3,790 M ($440 million US).
Net sales increased to SEK 19,638 M ($ 2.3 billion US) compared to SEK 17,619 M ($2 billion US) during the third quarter 2020. When adjusted for changes in the exchange rates, net sales were also up 11% in the same period. Machine sales increased by 11%, and service sales by 13%. Net order intake remained flat, though still high. Deliveries decreased by 9%, due to declines in China.
“Despite industry-wide challenges of supply and delivery constraints, the power of Volvo CE as a truly global leader is clear to see in today’s quarterly results,” says Volvo CE President Melker Jernberg. “While sales in China have dipped, the strength of sales in other regions has ensured we have remained at peak performance.”
“Across both the European and the North American markets, demand has remained high – the latter thanks to high infrastructure investments and housing construction activity. Asia, excluding China, showed good improvements particularly across South Korea and Southeast Asia,” says Volvo in its release.
The company remains cautious in its outlook due to continuing uncertainty with the supply chain and the ongoing Covid-19 pandemic.
New products lead the way
With the recent launch of three new electric compact machines, Volvo holds the title for the largest range of commercially available electric machines. The company also launched 16 new machines in India, and the world’s first fossil-free steel prototype vehicle this quarter.
“This quarter has also demonstrated our leading focus on sustainable power, with several exciting launches and events, ensuring we keep a strong focus on building a brighter future,” Jernberg said.