Volvo CE’s Q4 net sales increased by 21 percent to $2.2 billion. Operating income rose by 19 percent, and amounted to $2.4 million. These earnings were impacted by higher sales, offset by production costs and selling expenses.
Full year net sales increased by 27 percent to $9.3 billion, with adjusted operating income increasing to $1.3 million (13.4 percent).
According to the company, demand in North America was up 16 percent over the same period in 2017 following a demand for excavators. Europe also improved during Q4, and was up by 12 percent in November after seeing growth in Russia, the UK, France, Italy, and Germany.
During Q4, Volvo saw net order intake increase by 9 percent. Order intake declined 24 percent in North America due to lower orders on medium machines after increased demand in Q3, and increased by 2 percent in Europe compared to 2017.
“2018 was a record year for Volvo CE, driven by good demand from all major regions in the construction, infrastructure and mining sectors,” Melker Jernberg, president, said in a press release. “In the future, we see further potential to increase volume flexibility in the supply chain, to improve quality and to grow our service business.”
Source: Volvo
