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VOLVO CONSTRUCTION EQUIPMENT SEES SALES UP 27% IN 2018

Supported by a fourth quarter that saw sales up 21% and deliveries increase by 24%, Volvo Construction Equipment ended its strongest year ever buoyed by good demand from all major regions and all industrial segments. 

Volvo Construction Equipment (Volvo CE) ended 2018 strongly, not only posting its best set of annual financial results ever, but also helping parent company the Volvo Group achieve record results. Growth in both machine and service businesses, and increased demand from construction, infrastructure and mining in all major markets, helped Volvo CE deliver strong improvements in sales, operating income, and order intake.

In Q4 2018, net sales increased by 21% to SEK 20,323 M (16,730). Operating income rose by 19% and amounted to SEK 2,157 M (1,820), corresponding to an operating margin of 10.6% (10.9). Earnings were positively impacted by higher sales, which were partially offset by higher production costs and selling expenses. 

For the full year net sales increased by 27%, to SEK 84,238 M (66,313). Adjusted operating income increased to SEK 11,306 M (7,917), corresponding to an operating margin of 13.4% (11.9). 


MARKET CONDITIONS

Demand in Europe improved during the fourth quarter, and was up 12% by the end of November, helped by strong growth in Russia, and moderate growth in the UK, France, Italy and Germany. North America was up by 16% over the same period in 2017, helped by greater demand for excavators (compact excavators up 10%, larger excavators up 23%), while South America saw a gain of 20%, up from low levels in Q4 2017 and driven mostly from growth in Brazil. Excluding China, Asian markets were up 11% compared to last year, boosted by an improving India. The Chinese market itself was strongly up, growing by 35% above 2017, driven by greater demand for excavators (compact and general purpose) and wheel loaders. 

News from https://www.volvoce.com