Volvo Construction Equipment reported strong and stable growth in the third quarter of 2022, thanks to robust sales in North and South America.
Net sales increased 23% compared to the same period in 2021, despite a 32% decline in net order intake and a 7% decline in deliveries, the company says.
Sales jumped to SEK 24.238 M, up from SEK 19.638 M in the same quarter last year. Volvo also reports SEK 3,773 M in adjusted operating income with a positive impact from price realization and mix effects, partially offset by increased material and freight costs.
Most Asian countries, except China, have shown good progress due to government stimulus programs and high commodity prices. The Chinese market remains a challenge, Volvo reports, with pricing pressure and weak demand due to lower economic activity combined with restrictions and lockdowns related to Covid-19.
While Europe has experienced sustained high construction activity, a mild slowdown and increased uncertainty about economic development have made customers cautious, Volvo says.
Overall global deliveries were down this quarter but were higher in Europe than the previous year, when excluding Russia. The lower global order intake is also an effect of halted sales in Russia and a high order intake in Q3 2021.
Company President Melker Jernberg noted that the company remains focused on both profitability and sustainability. During the quarter, Volvo continued its global rollout of electric machines, including customer education events on the products and a test pilot for an online ‘build and price’ tool.
“In this quarter we took still more steps on our transformation journey, ensuring that our electric machines and charging solutions are built to fit the needs of our customers in any application and region of the world,” Jernberg said. “Together with our customers, we can lead the transition to a decarbonized construction industry, while still continuing our efforts to build upon our strong financial position.”