Growth in most major markets helped Volvo Construction Equipment deliver a solid first financial quarter 2019, with sales up 15% and profitability up 26%.
The major global construction equipment markets of Europe and North America both saw growth in the first quarter, growing 3% and 4% respectively in the first two months of the year. The European market was driven by good demand from Germany, the UK and Italy, while growth in North America was boosted by growing demand for large wheel loaders, road equipment and articulated haulers. A recovering Brazil helped demand in South America rise by 5% during Q1, while Asia (not including China) slipped 4% compared to the same period last year. China, meanwhile, delivered stronger demand than expected, rising 23% compared to the first quarter of 2018.
“The global market for construction equipment remained good in the first quarter,” commented Volvo CE’s President Melker Jernberg. “We are successfully managing these increases in volumes, and this good cost control is helping to deliver encouraging levels of operating income and operating margin.”
Table 1. Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona