Volvo CE reports 6% rise in Q4 sales
By Leila Steed03 February 2021
Volvo Construction Equipment’s (Volvo CE) financial results have shown a strong recovery in the fourth quarter of 2020, with sales increasing by 6% compared to the same period in 2019. The manufacturer said that it had “recovered well” after the steep drop in demand at the start of the pandemic.
The Sweden-based company’s latest financial results showed that its full year net sales for 2020 had decreased by 8% to SEK81.4 billion ($9.6 billion), from SEK88.6 billion ($10.5 billion) in 2019.
While 2020 saw a drop in the company’s full year results across most regions, machine sales in the Asian market increased from SEK33.9 billion ($4.02 billion) in 2019 to SEK39.1 billion ($4.6 billion) in 2020.
The fourth quarter of 2020 saw the company’s net order intake increase by 31%, as result of “improving activity in most markets and dealer restocking”. Order intake in Europe increased by 20% for the last quarter of the year, but fell by 18% in North America when compared to the same quarter in 2019. In South America order intake was up 182%, up from low levels in most markets, and driven by a recovery in Brazil.
Volvo CE’s order intake for the Asia region was up 39% in the fourth quarter of 2020, which it said was “boosted by government stimulus in China and improvements in other markets”.
Melker Jernberg, president of Volvo CE, said, “In 2020 the global pandemic presented us with challenges that are unprecedented in modern times. But together with business partners and suppliers we were able to support customers through all stages of the crisis. Construction activity is now back on a par with pre-pandemic levels, and this is giving confidence to customers, which is visible in our strong order intake.”