Gains in market share in many countries have contributed to a “strong performance” for Volvo Construction Equipment (CE) in the third quarter of this year.
An increase in sales in Russia and growth in Asia have played a key role in the manufacturer’s 34% boost in overall sales – back by an apparent 45% jump in orders.
Net sales during the third quarter of 2017 equated to almost $1.8 billion.
Actual deliveries of equipment were up noticeably – by almost 50% – during recent months. Operating margin was also up.
Image source: Shane Casey
“This is an especially strong performance. Volvo CE has responded well to the growing demand, with volume increases up 48%, while at the same time taking a significant step up in profitability,” said Martin Weissburg, president of Volvo Construction Equipment.
We also continue to gain market share within our product and market strongholds.
The European market showed a 15% increase for Volvo CE. In particular, this was thanks to improved performance in France, Italy and the UK. Germany also showed an increase – but only by a small margin.
Performance in Russia – which was previously weak – is up 101%. The increase for North America is 7%, when compared with the same period of last year. This, says Volvo CE, is thanks to more demand for excavators – of varying sizes.
The South American market, which is still at a relatively low overall level, is apparently up 6%. The Chinese market is up 74%, compared with the same period of last year – thanks in particular to improved sales of large wheel loaders and excavators.
In other Volvo CE news, the company has been busy testing its LX1 prototype electric hybrid wheel loader. The firm claims that it has achieved a dramatic improvement in fuel efficiency, compared to its conventional counterparts.
Volvo presented the ‘field’ test results for its prototype hybrid loader in California, US, earlier this year. Since the end of 2016, the LX1 has apparently performed “hundreds of hours of real work in California”.
Testing began at a landfill and recycling facility in the northern part of the state. Both fuel efficiency and greenhouse gas emission tests were conducted and, although the data is still being analysed, the results so far reportedly show an average improvement of 50% in fuel efficiency.
During a second extended test, at a waste transfer facility – the LX1 reportedly achieved an average fuel efficiency improvement of around 45%. Both sets of results “exceed the 35% fuel efficiency improvement target set for the project”.
