Volvo Construction Equipment reported sales of about $9.2 billion (88.6 billion SEK) for 2019, up 5 percent over 2018. Adjusted operating income for the year was also up by about 5 percent.
“2019 was another year of good performance on several levels,” said president Melker Jernberg. “We gained market share in the larger equipment category in North America and in Europe saw good developments in sales, operating income and cash flow. Asia has had its challenges, but in China we see encouraging market share growth in large excavators and wheel loaders, which is good to see.”
Sales in North America were up 11.6 percent to about $1.8 billion (17.4 billion SEK).
Sales in the fourth quarter were down 3 percent. The company said demand in Europe improved during the fourth quarter, and was up 6 percent by the end of November, helped by continued growth in Germany, Italy, France, and Russia. North America was also up by 6 percent over the same period in 2018, helped by greater demand for larger equipment, while South America saw a gain of 17 percent, driven mostly from growth in Brazil. Excluding China, Asian markets were down by 11 percent compared to last year. The Chinese market itself continued to grow, and was up 8 percent, with increased demand for both excavators and wheel loaders, the company said, including those branded SDLG.
Orders increased by 6 percent in the fourth quarter, driven by good demand for SDLG-branded machines in China and Russia. Orders declined in Europe by 5 percent, despite a strong increase in Russia. North America orders intake jumped by 40 percent, as Volvo cited dealers restocking. In Asia (excluding China), orders were down by 17 percent, while China saw an increase of 14 percent.
Source: Volvo Construction Equipment