Volvo Construction Equipment saw a total net sales decline of 7 percent in the third quarter of 2013, compared to third-quarter 2012—from SEK 1.3 billion ($2.09 billion) to SEK 12.2 billion ($1.9 billion). The company reported a positive operating margin of 4 percent, which Volvo attributes to efficiency enhancements, cost control measures and a balanced inventory level.
The company’s third-quarter operating income was down 17 percent—from SEK 602 million ($9.5 million) in 2012 to SEK 496 million ($7.8 million).
The company’s full-year outlook remains unchanged.
“While there is still no clear sign of a global market recovery in the construction equipment sector, we did see an uptick in China, driven by sales of smaller equipment, and a slight increase in the European market,” said Pat Olney, president of Volvo CE. “Our base scenario for 2014 is that the markets will remain at largely the same level as we have seen in 2013.”
The company expects the European market to decline 5 to 15 percent, with North America, South America, Asia (excluding China) and China itself to range from minus 5 percent to plus 5 percent. For 2014, these markets are expected to be in the range of minus 5 percent to plus 10 percent, with the exception of China, which is forecast to range from flat to plus 10 percent.