Volvo Construction Equipment sales fell 14 percent in the second quarter, to about $2.5 billion. Sales in North America were around $390 million, down 37 percent.
The company cited the global impact of the Covid-19 pandemic, although it noted the decline was partially offset by a strong rebound in the Chinese market. Despite lower demand impacting sales profitability held up well during the period, the company said.
Orders rose 11 percent in the quarter, driven by a strong demand for the company’s SDLG branded machines, which were up by 31 percent.
The year up to the end of May saw both the European and North American markets shrink by 22 percent, in terms of units, while the Asian market (excluding China) fell by 21 percent. The Chinese market was up 13 percent at the end of May. The South American market was also in positive territory, up by 8 percent at the same point in the year.
“While demand for construction equipment in both Europe and North America was weak during the second quarter we were able to leverage our strong position in China, which rebounded strongly in the period,” said Melker Jernberg, head of Volvo Construction Equipment, in a prepared statement. “This is allowing us to act from a position of relative strength and to drive transformational technologies that are moving our industry to more sustainable solutions. We are continuing to invest in electrification, automation and connectivity.”
Source: Volvo Construction Equipment
