Volvo Construction Equipment saw a reduction in second-quarter 2013 sales, with a decrease of 19 percent from the second quarter of 2012. However, the company’s operating margin more than doubled compared to the first quarter of 2013.
Net sales in the second quarter totaled SEK 16,019 M (SEK 19,715 M in Q2 2012). Adjusted for currency movements, net sales decreased by 14 percent. Operating income also decreased, to SEK 1,324 M, from 2,742 M in the same period during 2012.
Operating margin, at 8.3 percent, although down compared to the 13.9 percent achieved in same period last year (due to lower sales in the higher margin mining sector), more than doubled versus the first quarter of 2013. Despite the weaker market conditions, the value of Volvo CE’s order book at the end of the second quarter was nearly at the same level as the year earlier period.
Measured in units, for the full year 2013 Europe is anticipated to decline by 5 to 15 percent, while expectations regarding North America, South America, China and the rest of Asia are all expected to be in the range of minus 5 percent to plus 5 percent.