While markets are fluctuating in various parts of the world, Volvo Construction Equipment has reported that net sales have remained steady year-to-year through the second quarter of 2022.
Volvo CE saw net sales in Q2 come in at SEK 25,814 million for 2022, a slight decrease from SEK 25,839 million in the same period of 2021. The Chinese market was down significantly in the second quarter, which proved a major factor in pushing deliveries down by 27 percent. The same market weakness, combined with high order intake experienced in Q2 2021, has resulted in a decline of net order intake by 42 percent.
While Chinese sales were weaker in the quarter, the rest of the world showed growth, the company reported. Sales in North America jumped 28 percent, while South America soared by 121 percent. Europe saw a 2 percent drop, while Asia was down 24 percent. Net sales of machines declined by 11 percent, but service sales rose by 5 percent.
"Thanks to the hard work of our colleagues and supply chain partners, we are enjoying a confident performance with solid sales on a par with last year," said Melker Jernberg, President of Volvo CE. "With our dedication to expanding our electromobility offering and taking action to place more sustainable construction solutions into the hands of our customers, we not only remain strong in the face of an unpredictable global outlook but are geared for growth."
Construction activity in most markets has remained on good levels, driven by both the commercial sector and the ongoing investments in infrastructure. While the Chinese market declined due to lower economic activity and pricing pressures, Asia outside of China instead saw strong growth in key markets supported by government stimulus and high commodity prices. There is a continued need to renew and expand an aging infrastructure in many countries across the world, with the South American market remaining on a favorable trend with demand for commodities on a high level. While construction activity in both Europe and North America remained high in Q2, total market deliveries were impacted by limited machine availability because of supply chain constraints.
Volvo CE reports that it continues to deal with challenges from the ongoing COVID-19 pandemic and the Ukraine war by focusing on supporting communities, planning for the future, and providing more sustainable solutions through electromobility and services.
