Product overhaul helps Volvo CE maintain profits despite industry slowdown
The company saw a 19 percent increase in sales following the largest product overhaul in decades
At the end of a year of declining sales, in line with the industry slowdown, Volvo Construction Equipment saw a turnaround in the final quarter of 2024 with an order increase of 19 percent.
Volvo CE has maintained a healthy profitability on lower volumes for the fourth quarter, following 12 months of declining sales, impacted by an ongoing weaker market landscape across many regions. While net sales have dropped 16 percent in Q4, order intake for the same quarter rose by 19 percent, driven by improvements in major markets across Europe, North America, Africa, and Oceania.
New models driving profits
Volvo CE is maintaining a more positive outlook coming into 2025, following a year of investments and new product launches, continuing with its largest product portfolio overhaul in decades.
New excavator models were rolled out, including the EC650 in China and the EC300 in South Korea, while in Europe, the latest generation of excavators was expanded with the launch of three mid-size crawler excavators.
A comprehensive range of articulated haulers has also been introduced. The updated range consists of seven models from 25 to 60 tons including one completely new model, the A50, offering contractors a new size class for hauling, available to global markets in the coming months.
Volvo is optimistic for 2025
Melker Jernberg, president of Volvo CE, said: "Despite lower volumes, we have been able to maintain a healthy profitability, whilst at the same time introducing new products and services, including a new range of articulated haulers to our existing portfolio.
"As we navigate challenging market conditions, we stand firm in our commitments and continue to invest. This last quarter has seen us move forward with our biggest launch year ever, balancing tomorrow's innovations with our customers' needs for today. 2025 will see us continue with these exciting developments, strengthened by an incredible performance from all our employees around the world."
