Continued weak demand in China limited Volvo Construction Equipment’s sales growth in the second quarter of 2022.
Volvo CE saw strong gains in North America (28%) and South America (121%), but net sales for the quarter were still flat due to losses in Europe (-2%) and Asia (-24%). Sales for the quarter finished at $2.5 billion (SEK 25,814 M compared with SEK 25,839 M in Q2 2021).
The company says deliveries were down by 27%, due primarily to the market decline in China. Net order intake also declined by 42% in the last quarter because of the drop in China and a natural leveling from the high order intake experienced during the same quarter in 2021. Total market deliveries were impacted by limited machine availability because of supply chain constraints, the company says.
Commenting on the results, 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.”
Highlights during the quarter included:
- Volvo’s investment in Dutch electric excavator manufacturer Limach to expand its electromobility portfolio.
- The first customer delivery of a machine manufactured using fossil-free steel.
- And the return of the Volvo Days event, where more than 7,000 customers visited the company’s headquarters in Eskilstuna, Sweden, to see the latest products and services.
