Volvo Construction Equipment (Volvo CE) has reported strong growth in sales numbers and profitability in the first quarter of 2017 indicating the improvement in market conditions .
During the first three months of 2017 Volvo CE saw net sales jump by 30 percent. Operating income was also positively impacted as well. The operating margin also saw sharp improvement, at 10 percent in comparison to 2.7 percent in the same period the year before.
In Q1 2017 Volvo CE also has shown an increase in order intake, which grew by 34 percent to 17,487 machines, with increases in orders coming from across worldwide markets particularly from China and Europe. The deliveries of equipment were also up 34 percent during the period to 16,369 machines.
At Conexpo in Las Vegas in 2017, Volvo CE showcased a new generation of its largest wheel loader – the 50-ton class L350H. Volvo CE also launched ActiveCare Direct in North America, a telematics monitoring service supported through the company’s dealer network.
Volvo CE’s president Martin Weissburg said, “After years of tough market conditions, the Volvo CE business is growing again. Higher sales volumes linked with increased internal efficiency and a lower cost base helped us deliver good profitability levels during the quarter. Volvo CE is on the right track, the improvement plan is yielding results and there are further opportunities to improve the long-term competitiveness of the company.”