Americas give boost to Volvo CE
19 July 2022
Volvo CE reported flat year-on-year sales in the second quarter of 2022 with a sharp decline in China offset by significant growth in North and South America, Africa and Oceana. Sales in Europe were down 2%.
Volvo said construction activity in Europe and North America remained high but deliveries were dampened by supply chain constraints which limited the availability of machines.
Deliveries to China were down 27% in the quarter and net order intake in the three months was 42% lower than the same quarter in 2021. Volvo said the lower orders reflected the large order intake in the same quarter of 2021 and the decline in China.
Total sales for the second quarter were flat at SEK 25.8 billion (€2.46 billion). Sales increased in North America (+28%) and South America (+121%), but dropped in Volvo’s two largest markets Europe (-2%) and Asia (-24%).
The Swedish OEM said high commodity prices were helping increase sales in Latin America, while in Asia outside of China some large markets were experiencing strong growth as a result of both commodity prices and government stimulus.
Melker Jernberg, President of Volvo CE, described it as a “confident performance with solid sales on a par with last year. With our dedication to expanding our electromobility offering and taking action to place more sustainable construction solutions into the hands of our customers, we not only remain strong in the face of an unpredictable global outlook but are geared for growth.”
During the quarter, the company delivered its first machine made using fossil-free steel, and invested in Netherlands electric excavator manufacturer Limach.