Volvo CE sales slip 14 percent in Q2

Sweden-based Volvo Construction Equipment (Volvo CE) says the company’s second quarter results were characterized by the negative effects of COVID-19 on society and economic development.

According to a release, Volvo CE’s adjusted net sales in Q2 amounted to 22,876 million SEK (about US $2.533 billion) compared to 26,814 million SEK in the second quarter last year, representing a 14 percent decrease. The company says higher sales in China did much to “compensate for lower sales in all other markets.”

Despite the impact of the pandemic on sales, the second quarter of 2020 saw order intake increase by 11 percent, driven by a strong demand for the company’s SDLG branded machines, which were up by 31 percent. Additionally, in spite of most Volvo CE factories in Europe and the Americas being shut down for a month during Q2 as a result of countrywide lockdowns and supply issues, deliveries increased by 8 percent in the second quarter.

Market development

The year up to the end of May saw both the European and North American markets, measured in units, shrink by 22 percent, while the Asian market (excluding China) reduce by 21 percent. The Chinese market has recovered strongly and was up 13 percent at the end of May, the company says. 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 CE. “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.”