“Our market share continues to increase in the heavy machine segment and the introduction of larger articulated haulers and excavators will generate significant productivity gains for customers and allow Volvo CE to enter new segments,” said Weissburg.
Market falls in the Middle East and Latin America failed to dent Volvo Construction Equipment’s Q1 2016 results, with sales and profitability on the same level as last year, boosted by strong interest in its new machine introductions.
Volvo CE sales in the first three months of 2016 dipped 2% to €1.356 billion (SEK 12,452 million) from €1.387 billion (SEK 12,737 million) in Q1 2015. Operating income was also largely flat at €37.14 million (SEK 341 million), down marginally compared to €38.33 million (SEK 352 million) in the first quarter of 2015. Operating margin also held up well, at 2.7%, compared to 2.8% in the same period the year before.
Of the first quarter 2016 results, Weissburg said: “Thanks to a strong focus on profitable product segments and markets we achieved similar results as in the first quarter of last year.”
A stronger European market, stable North American region and increased momentum in the Chinese market helped offset slowdowns in Latin America, the Middle East and Russia during the first three months of the year.
The construction equipment industry continued to decline in a number of major markets in Q1 2016, in particular the Middle East and Latin America. The European market is showing positive growth however, up 6% compared to the same period last year, driven mainly by the French market, which jumped 55%. This growth was countered by a cooling UK market and continued slide in Russian demand.
Elsewhere, the North American market remained stable (-2%) while demand in Latin America dropped sharply (down 40%), especially in Brazil, due to low business confidence and a weak economy. The Chinese market showed increased momentum during the quarter, with demand for excavators and wheel loaders increasing by 8% during the period, compared to last year.
