Sales down but Volvo CE remains optimistic
Lower demand in most markets outside Europe weighed on Volvo CE’s second quarter 2016 revenue. But this was partially offset by gains in market share in the heavy equipment segment, according to a written statement from the Swedish manufacturer.
Adjusted for currency movements, Volvo CE reported net sales down 7% in the second quarter of 2016, impacted by lower demand in most markets outside Europe. Weaker machine sales in China and Brazil were partially offset by higher sales in Europe.
Net sales in the second quarter decreased by 12%, amounting to €1,409 million (€1,626 million. Adjusted for currency movements, net sales were down by 7%. Operating income was nearly €85.5 million in the period, equating to an operating margin of 5.9%, down from 8.8% last year at the same time.
“The second quarter saw Volvo CE improve operating margin compared to the first quarter, despite continuing weak demand in many markets,” said Martin Weissburg, president of Volvo Construction Equipment.
“It is encouraging to see that the ongoing internal efficiency programme continues to deliver results and that Volvo CE is gaining market share in the heavy segment, particularly in Europe.”
