Volvo Construction Equipment (Volvo CE) has achieved a steady rise in sales across both the last quarter and the full year, 2022.
All global markets have enjoyed an increase in machine sales over the last quarter 2022–with North America seeing the highest rise of 54%, thanks to strong activity in the infrastructure segment.
Meanwhile China, which has continued to be impacted by low economic activity last year during the Covid-19 pandemic and ongoing lockdowns, saw an increase in sales and deliveries in Q4 due to the introduction of emission regulations.
In Q4, 2022 net sales increased by 27 percent to SEK 27,596 M (21,812), with a contribution from both machine sales and the service market. Adjusted for currency movements net sales increased by 13 percent, of which net sales of machines were up by 15 percent and service sales remained on a similar level. For the full year 2022, net sales rose 9 percent amounting to SEK 100,261 M (92,031). Adjusted operating income for the full year totaling SEK 13,244 M (12,228), and corresponding to an adjusted operating margin of 13.2 percent (13.3).
Global net order intake has continued to remain low with a decline of 23 percent from Q4, 2021–although still slightly more orders than the last quarter Q3, 2022– largely due to restrictive order slotting caused by large order books and long lead times in North America and Europe, as well as stopped sales in Russia. However, deliveries have increased by 4 percent, again thanks to emission regulations coming into effect in China and the good demand in North America and Asia.
Except for China, activity in the construction industry has remained good across many regions, primarily driven by ongoing infrastructure investments and favorable commodity prices. Underlying demand in the North American market remained solid due to steady infrastructure activity and in South America, the overall market in Q4 was impacted by a slowdown of investments in Brazil. Meanwhile in Europe the market remained relatively steady despite signals of a weakening business climate.
Most Asian markets enjoyed continued high demand for commodities, partially off-set by lower construction activity in key markets such as South Korea and Thailand. And while China was still affected by restrictions and lockdowns caused by the Covid-19 pandemic, it did however see a positive development due to the fact pre-bought electric machine sales were coming into effect from December 1, when emission regulations were introduced.
Source: Volvo CE
