Deliveries up 9% in fourth quarter as markets show sign of improvement - Press releases : VOLVO CONSTRUCTION EQUIPMENT - MALAYSIA
06/02/2014 

Deliveries up 9% in fourth quarter as markets show sign of improvement



In the fourth quarter of 2013 Volvo Construction Equipment reported that net sales increased by 3% to SEK 13,005 compared to SEK 12,572 in the same period of the preceding year. When adjusted for currency movements net sales increased further – to 6%. These improved figures are due largely to higher sales of smaller equipment, helping to boost deliveries by 9% during the quarter. Demand for larger machines, especially in the mining segment, remains subdued, however.

Operating income was up 16% during the period, at SEK 272 M, compared to SEK 235 M in the same period of the previous year. Operating margin also saw improvements in the fourth quarter, at 2.1% – up from 1.9% in Q4 2012.

Late improvement rounds off challenging year
Despite the sales increases in the final three months, for the full year 2013 Volvo CE saw sales decrease by 16% to SEK 53,437 M, compared to 63,558 M in 2012. Operating income was also down during the year, a result of tough price competition, weak product mix, low capacity utilization and unfavorable exchange rates, to SEK 2,592 M, down from SEK 5,667 M in the preceding year. Operating margin was also affected, slipping to 4.9% in 2013 from 8.9% in 2012.

These figures reflect the general weak market conditions experienced during the year.

Growth in 2014
The prospects for 2014 are expected to show some improvements as global markets recover. For 2014 the total markets in China and Europe are expected to increase in the range of 0-10% measured in units, while North America, South America and Asia (excluding China) are all expected to be in the range of minus 5% to plus 5%.

“For 2014 we expect a slight improvement in market demand, mainly driven by China and Europe,” commented Martin Weissburg, the incoming president of Volvo Construction Equipment, who joined the company on January 1st 2014.

Table 1. Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona

Net sales by market area

Fourth quarter

Full year

SEK M

2013

2012

2013

2012

Europe

        4,122

    3,861

    16,356

     16,518

North America

        2,105

    1,973

      8,319

     12,027

South America

           831

      761

      3,314

       3,788

Asia

        5,100

    5,143

    21,911

     27,033

Other markets

           846

      833

      3,539

4,193

Total

      13,005

  12,572

    53,437

     63,558


Ends.  
        
February 2014

For further information, please visit: www.volvoce.com/press
    
Or contact:
  
Thorsten Poszwa    
Director, External Communications  
Volvo Construction Equipment             
Tel: int +32 2482 5021               
Email: thorsten.poszwa@volvo.com             
Twitter: http://twitter.com/VolvoCEGlobal
  
Brian O’Sullivan
SE10
London
Tel: int +44 77 333 50307
Email: osullivan@se10.com