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| Volvo CE sees sales slide in second quarter as industry contracts Volvo Construction Equipment has posted second quarter results that are broadly in line with the global reduction in demand, with net sales in the period down by 45% to SEK 9,151 M (16,732 M in 2008). The second quarter of 2009 saw demand for heavy, compact and road construction equipment drop to almost half the levels seen in the same period last year, with 48% fewer machines being sold worldwide. This weakness is widespread, with demand in Europe down 62%, North America down 53%, Asia down 14% and other markets down by almost two thirds (65%). In light of the global economic situation, order bookings at the end of June were 70% down on the same time in 2008. Despite this, Volvo Construction Equipment has maintained or even improved its share in most markets and product segments in the quarter, with customers preferring the assurance of buying competitive products from the leading brands. Sales of spare parts and aftermarket service are also faring better in the recession. China is one of only a few current bright spots in the global picture, as stimulus funding has helped demand grow by 6% in the second quarter, helping to cushion the impact of the downturn in Asia. Elsewhere, stimulus investments are yet to show signs of moving the market. The outlook for 2009 is characterized by much softer market conditions than in 2008. The European market is expected to decline by between 40% and 50% for the full year, while North America is forecast to be down by 30-40% in 2009. The rest of the world is likely to see a year-on-year fall in demand of between 30-40%. Notable events for Volvo CE during the second quarter included the ending of motor grader production in Goderich, in Canada. The last machine rolled off the line in June, and motor grader production is now consolidated into the company's road machinery facility in Shippensburg in the US. write your comments about the article :: © 2009 Construction News :: home page |