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| Volvo CE’s full year 2008 results see sales rise 5% Volvo Construction Equipment (Volvo CE) has announced that it delivered 64,000 units in 2008, a similar figure to 2007 but resulting in an increase in net sales of 5%.These full year figures came in the face of a negative fourth quarter, which saw global financial uncertainty push Volvo CE sales down 29% in the period and the total world market down by 39%. For the full year 2008 Volvo CE's sales increased by 5% to SEK 56,079 M (53,633 M). Both operating income and operating margin were badly hit in the final quarter of the year, dragging Volvo CE's full year operating income to SEK 1,808 M (4,218 M in 2007) and operating margin to 3.2% down from 7.9% in the preceding year. Volvo CE was affected by the severe downturn in the global market for construction equipment in the fourth quarter, reporting a loss during the period. Sharply declining sales, production cutbacks and higher raw material costs all contributed to the loss. Net sales in the fourth quarter were down 29% and amounted to SEK 11,031 M (SEK 15,523 M in 2007). When adjusted for changes in the exchange rates and acquired and divested assets, net sales fell by 38%. The operating loss amounted to SEK 1,256 M compared to an operating income of SEK 1,035 M in the fourth quarter of 2007. The operating margin in the period was a negative 11.4% (positive 6.7% in 2007). The outlook for 2009 is uncertain, but is expected to remain weak. The European market is set to decline in the range of 30-40%. North America is forecast to decline between 10-20% while the rest of the world is likely to be down 30%. write your comments about the article :: © 2009 Construction News :: home page |