Volvo CE revenues slip -7%

Revenues at Volvo Construction Equipment fell -7% in the third quarter of the year, compared to the same period in 2012, to SEK 12.3 billion (US$ 1.94 billion). The division’s operating profits were down-18% to SEK 496 million (US$ 78 million).

A company statement said, “In spite of a difficult market situation with weak demand, especially from the mining industry, and an unfavourable currency development, Volvo CE had an operating margin of 4% thanks to good cost control.”

The company saw its revenues from Europe rise +8% to SEK 4.12 billion (US$ 650 million) in the quarter, but all other regions of the world saw declining sales in cash terms. However, the number of units delivered was up in Asia, which the company attributed to increased sales of smaller equipment.

Overall the company said there were, “No clear signs of [a] global market recovery in the construction equipment industry,” although it noted the up-tick in Europe. Volvo said this indicated the market was stabilising at a low level.

The Volvo Group’s revenues for the quarter were SEK 64.9 billion (US$ 10.2 billion), down -5.4% from the same period last year.