Volvo Construction Equipment (
Net sales in the third quarter decreased by 6%, amounting to €1.26 billion (SEK 11.884 billion) compared to €1.34 billion - SEK 12.582 billion in Q3 2014. Operating income, excluding restructuring charges, decreased to €61.38 million (SEK 576 million), from €69.06 million (SEK 648 million) in the same period of 2014. Despite the lower demand, operating margin remained largely stable, at 4.8, compared to 5.1% in same period last year. Earnings were assisted by favourable currency movements and gross margin improvements, as a result of better product mix and lower operating expenses.
During the year-to-date the European market is down 7%, mainly driven by a sharp drop in Russia and a slowdown in France. Excluding Russia, the European market is up by 3%. Growth is also present in North America, at 4%, but the rate of growth is showing signs of slowing. The decrease in South America (-36%) continues to be caused largely by Brazil (-45%), which is being affected by slow economic development and low overall business confidence. The Chinese market, meanwhile, has continued to decline sharply – falling 50% in the year-to-date.
“Despite volumes being down during the period, our targeted sales activities and ongoing efficiency programme helped to deliver positive operating income and market share gains in the segments for larger machines,” said Martin Weissburg, president of Volvo CE.
