Sales up more than 20% for Volvo CE

Volvo CE saw net sales increase in the third quarter of 2022, despite the Chinese market declining

Sales for Volvo Construction Equipment (Volvo CE) increased by 23% in the third quarter of the year compared to the same period last year, with strong sales in North America a major contributor to this growth.

The total net sales of SEK 24.2 billion (US$2.2 billion) for the third quarter of 2022 with sales in North America rising from SEK 3.7 billion (US$329 million) to SEK 5.5 billion (US$490 million).

South America also saw sales increase, but Europe, Africa and Oceania and Asia all registered a decline in sales.

Volvo CE commented that the decline in sales in Asia was due to falling sales in China, with the market continuing to be “challenging” with pricing pressure and weak demand due to lower economic activity combined with restrictions and lockdowns related to Covid-19. However, most other countries in Asia reported sales growth.

In Europe, construction activity still remained high while a mild slowdown continued with increased uncertainty about the economic development making customers cautious. While overall global deliveries were down this quarter, deliveries were actually higher in Europe than the previous year, when excluding Russia.

The lower global order intake is also an effect of halted sales in Russia and a high order intake in the third quarter of 2021.

Volvo CE added that sustainability has remained high on the agenda with the continued global rollout of its electric machines – including the ECR25 Electric excavator in South Korea. In China, a series of customer events were held to introduce customers to the company’s electric offering and charging solutions.

Melker Jernberg, President of Volvo CE, said, “In this quarter we took still more steps on our transformation journey, ensuring that our electric machines and charging solutions are built to fit the needs of our customers in any application and region of the world. Together with our customers, we can lead the transition to a decarbonised construction industry, while still continuing our efforts to build upon our strong financial position.”