Volvo Construction Equipment posted fourth quarter net sales of SEK 19.716 billion (about U.S. $2.044 billion) compared to SEK 20.323 billion in the same period in 2018, a 3-percent decline. However, for the full year of 2019, net sales increased from SEK 84.238 billion in 2018 to SEK 88.606 billion in 2019, a 4.9-percent increase.
Net sales in North America slowed down in the fourth quarter posting SEK 3.300 billion compared to SEK 3.836 billion in Q418, a 14-percent slide. However, for the full year, North America net sales totaled SEK 17.404 billion compared to SEK 15.575 billion in 2018, an 11.7-percent increase. In Europe, Volvo posted SEK 6.791 billion in Q419 compared to SEK 6.729 in Q418, a 9.1-percent hike. For the full year, net sales in Europe jumped 11.1 percent from SEK 27.291 in 2018 to SEK 30,300 in 2019.
Fourth quarter sales were strong in Asia, with net sales at SEK 7.930 billion compared to SEK 7.571 billion in the fourth quarter of 2018, a 4.7-percent jump. For the full year, net sales in Asia were SEK 33.932 billion compared to SEK 33.781 billion in 2018, a 4.5-percent increase.
Demand in Europe improved during the fourth quarter, and was up 6 percent by the end of November, helped by continued growth in Germany, Italy, France and Russia. North America’s 6-percent rise was helped by greater demand for larger equipment, while South America posted a gain of 17 percent, driven mostly from growth in Brazil. Excluding China, Asian markets were down by 11 percent compared to last year. The Chinese market itself continued to grow, and was up 8 percent, with increased demand for both excavators and wheel loaders.
During the fourth quarter of 2019 Volvo CE saw net order intake increase by 6 percent, driven by good demand for SDLG branded machines in China and Russia. Order intake in Europe declined by 5 percent, despite a strong increase in Russia. Thanks to dealers restocking, North America saw order intake jump by 40 percent. In Asia (excluding China), order intake was down by 17 percent, while in China it was up by 14 percent. Volvo CE continues to gain market share in both wheel loaders and excavators in China.
Deliveries increased by 4 percent during the fourth quarter 2019, again boosted by higher volumes in China and Russia on SDLG products.
“2019 was another year of good performance on several levels,” said Melker Jernberg, president of Volvo CE. “We gained market share in the larger equipment category in North America and in Europe saw good developments in sales, operating income and cash flow. Asia has had its challenges, but in China we see encouraging market share growth in large excavators and wheel loaders, which is good to see.”
In February 2020 Volvo CE will start taking orders for both electric compact wheel loaders and compact excavators. Serial production is planned for Q3 2020.
