There is caution but no catastrophe in the European construction equipment sales market, according to 2394 Volvo Construction Equipment (CE) EMEA sales president Tomas Kuta.
Speaking at a press conference to launch Volvo CE’s PL3005D pipelayer, and ahead of the in-port race of the Volvo Ocean Race in Lorient, France, Kuta said: “Europe is not a catastrophe. Our Quarter 1 (2012) results were very much driven by Europe, but it’s the outlook that is so uncertain.
“We (Volvo CE) have seen good development in the northern European market, in countries like Germany and France, but, in the total European market, customers are more cautious.”
Volvo CE saw a 17% Q1 2012 rise in net sales to €2.05billion (SEK 18billion); a 21% increase in operating income to €243.6million (SEK 2,131million); and an operating margin of 11.8%, up from 11.4% over the same period of 2011.
On the impact on Europe of the current global economic crisis, Kuta added: “We are very cautious and reviewing the situation daily. We are worried about southern Europe.
“There are some markets going very well like the Middle East. Turkey, I would say that’s our most robust (sales) area. Russia is exploding right now with (Volvo CE) 70% sales growth in Q1 2012. Africa is also very good for us.”
Kuta said Volvo CE had much to be proud of as it celebrates its 180th year during 2012. Looking at more recent achievements, he said the company had been the first major construction equipment manufacturer to deliver Stage IIIB compliant engines across its heavy and mid-size machine models. He noted how Volvo CE had won the red dot design award two years running, firstly in 2011 for its L220G wheeled loader, and this year for the A40F articulated hauler. He also highlighted the firm’s Gold in the242 INTERMAT Innovation Awards for its On Board Weighing System.
In addition, Kuta stressed Volvo CE’s ambition which has seen the company invest in expanding manufacturing capability for articulated haulers and wheeled loaders at its base in Eskilstuna, Sweden, and begin the construction of a new excavator plant in Kaluga, Russia, set to open in early 2013 and produce around 2,000 machines a year.
On forthcoming machine research and development priorities for Volvo CE, Kuta said: “We think there is more to be done in diesel engine development and optimising drive lines.
Asked whether Volvo CE was looking at the full acquisition of diesel engine manufacturer Deutz, after Volvo CE last month increased its share of the German firm to over 25% from 6.7%, Kuta said he could not comment on any potential Volvo CE company acquisitions.
Speaking at a press conference to launch Volvo CE’s PL3005D pipelayer, and ahead of the in-port race of the Volvo Ocean Race in Lorient, France, Kuta said: “Europe is not a catastrophe. Our Quarter 1 (2012) results were very much driven by Europe, but it’s the outlook that is so uncertain.
“We (Volvo CE) have seen good development in the northern European market, in countries like Germany and France, but, in the total European market, customers are more cautious.”
Volvo CE saw a 17% Q1 2012 rise in net sales to €2.05billion (SEK 18billion); a 21% increase in operating income to €243.6million (SEK 2,131million); and an operating margin of 11.8%, up from 11.4% over the same period of 2011.
On the impact on Europe of the current global economic crisis, Kuta added: “We are very cautious and reviewing the situation daily. We are worried about southern Europe.
“There are some markets going very well like the Middle East. Turkey, I would say that’s our most robust (sales) area. Russia is exploding right now with (Volvo CE) 70% sales growth in Q1 2012. Africa is also very good for us.”
Kuta said Volvo CE had much to be proud of as it celebrates its 180th year during 2012. Looking at more recent achievements, he said the company had been the first major construction equipment manufacturer to deliver Stage IIIB compliant engines across its heavy and mid-size machine models. He noted how Volvo CE had won the red dot design award two years running, firstly in 2011 for its L220G wheeled loader, and this year for the A40F articulated hauler. He also highlighted the firm’s Gold in the
In addition, Kuta stressed Volvo CE’s ambition which has seen the company invest in expanding manufacturing capability for articulated haulers and wheeled loaders at its base in Eskilstuna, Sweden, and begin the construction of a new excavator plant in Kaluga, Russia, set to open in early 2013 and produce around 2,000 machines a year.
On forthcoming machine research and development priorities for Volvo CE, Kuta said: “We think there is more to be done in diesel engine development and optimising drive lines.
Asked whether Volvo CE was looking at the full acquisition of diesel engine manufacturer Deutz, after Volvo CE last month increased its share of the German firm to over 25% from 6.7%, Kuta said he could not comment on any potential Volvo CE company acquisitions.
