Volvo CE posts 5% sales growth in third quarter

Volvo CE ECR355 short-swing excavator (Photo: Volvo CE)

The Swedish OEM added that machine deliveries increased by 8%, order intake by 16% and service sales by 5%.

During the third quarter, the global machine market continued to expand year on year, with growth across Europe, North America, South America, Asia, Australia and Africa. The Middle East, however, saw a decline.

The European market continued to grow in almost all countries, supported by infrastructure investment and more positive business sentiment. However, demand in Germany has yet to show a meaningful improvement.

Volvo CE said that North American market continued to show resilience, supported by investments in data centres, energy infrastructure and the onshoring of manufacturing.

South America saw growth across all markets, although at a slower pace than earlier in the year due to a wait-and-see approach among some customers in Brazil ahead of the election. Demand was driven by heavy infrastructure and mining.

The Asian market also grew, with demand in Southeast Asia and India supported by infrastructure spending and strategic industrial investments such as semiconductors.

Markets in Australia and Africa grew strongly, driven by infrastructure and mining projects. The Chinese market also expanded, supported by replacement demand, farmland transformation and urban improvement projects.

Melker Jernberg, president of Volvo CE, said, “Demand remained healthy, and we saw positive development in both our equipment and services operations. Despite ongoing inflationary pressures and higher energy and raw material costs, we remain focused on execution and delivering value for our customers.

“As we enter the final quarter of the year, we see opportunities to build on this momentum and are well positioned to deliver a solid full-year performance through continued focus and operational excellence.”

Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona (SEK).