Volvo CE reports flat second quarter amid fluctuating global market
20 Jul 2022
Drop in sales in China and Asia offset by spikes in North and South America, as Swedish giant remains strong in Q2, 2022
Rising sales in North and South America have offset a drop in the Chinese market and slight declines in Europe and Asia at Volvo Construction Equipment (CE), as the company reported a flat second quarter of the year.
In its report for the quarter, the Swedish giant said that it “maintained its strong position on the market – while taking action to build a more sustainable construction equipment offering for today and tomorrow”.
While overall deliveries for the quarter were down by 27%, due primarily to the market decline in China, net order intake also declined by 42%, which the company also attributed as a consequence of the drop in China. It added that the drop was also a natural outcome “of the high order intake experienced during the same quarter 2021”.
However, the downturn in China has been well compensated by growth in the rest of the world, said Volvo. In Q2, 2022, total net sales were flat at SEK $2513m, compared with $2516m in the same quarter last year.
Despite the drop in a major market such as China, the figures remained steady owing to sales greatly increasing in North America, with a 28% spike, and South America, up 121%. Sales dropped by a small 2% on Europe, while falling 24$ in Asia. Meanwhile, service sales continued to rise, enjoying an increase of 5%.
Volvo CE said it is continuing to “weather the challenges created by the ongoing Covid-19 pandemic and the war in Ukraine by supporting its communities, preparing for the future and providing more sustainable solutions in the here-and-now with its strong focus on electromobility and services”.
The company said that in the last quarter it “demonstrated its commitment to building a better world” with the handover of the world’s first machine made from using fossil-free steel. Volvo also invested in Dutch firm Limach to expand its electromobility portfolio, which is already among the best in the industry.
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.”
The quarter also marked an important event for Volvo CE with the return of its flagship Volvo Days in Eskilstuna, Sweden, for the first time in four years. Under the banner of ‘Change Starts Here’, over 7,000 customers visited the company’s headquarters to take a closer look at its industry-leading line-up of products and services for today and tomorrow.
Volvo CE net sales by market area, in Millions of Swedish Krona (SEK):