Equipment Type

Volvo Construction Sales Up 28% in Q4

Full year Volvo CE sales up 31 percent, highest sales in company history

January 31, 2018

Volvo Construction Equipment (Volvo CE) put in a strong performance in the fourth quarter of 2017, helping its parent company the Volvo Group achieve the highest sales and operating income in its history. Improved competitiveness coupled with growing demand – especially in Asia – helped Volvo CE deliver strong improvements in sales, operating income, and order intake. 

During the fourth quarter of 2017 Volvo CE saw net order intake increase by 48%, largely driven by strong demand in China and North America. Deliveries increased by 49% during the period, again boosted by higher volumes in China.

“The performance program to strengthen Volvo CE’s competitiveness combined with increased market demand yielded good results in 2017,” says Melker Jernberg , the new president of Volvo Construction Equipment. “Volvo CE improved profitability and gained market share in several of our stronghold segments of excavators, wheel loaders and haulers.” 

Volvo CE has begun 2018 in confident mood. In January the company took another step to further strengthening its customer offer with the announcement that the Volvo brand was entering the rigid hauler market, introducing four new models ranging from 45 to 100 tons.

In Q4 2017, net sales increased by 28% to SEK 16,733 M (13,110). When adjusted for currency movements net sales were up even more, to 34%. Operating income amounted to SEK 1,816 M (494), corresponding to an operating margin of 10.9% (3.8). Earnings were positively impacted by higher sales and increased utilization of the industrial system.

For the full year net sales increased by 31%, to SEK 66,497 M (50,731). Adjusted operating income increased to SEK 7,917 M (2,246), corresponding to an operating margin of 11.9% (4.4).

Volvo GroupQ4 Net Sales Up

Volvo Group's Q4 and full year report is available here:

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