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| Volvo reports sales surge in first three months of 2010 Improving market conditions, especially in Asia and South America, combined with lower costs and increased capacity utilization drive Volvo CE back into profitability in the first financial quarter of 2010. Volvo Construction Equipment experienced a significant improvement in both sales and income during the first quarter of 2010 as the total world market for heavy, compact and road machinery equipment increased by 30% between January to March, when compared to the same period the year before. The company's net sales during the first three months were driven strongly by surges in demand in Asia and South America, rising 36% to SEK 11,148 M (SEK 8,172 M in Q1 2009). When adjusted for currency movements, this out-performance of the wider market increased further, to 51%. Volvo Construction Equipment also made a welcome return to profitability during the first quarter, with operating income improving substantially to SEK 1,006 M, up from a loss of SEK 1,395 M in the same period last year. Reinforcing the underlying strength of the business, operating margin was also strongly improved at 9% during the first three months, up from a negative 17.1% during the same period in 2009. This improved position was not only the result of higher sales, but also due to cost reducing activities implemented during 2009 and better cost absorption via increased production activity. The value of Volvo CE's order book on 31st March 2010 was also significantly improved, 53% higher than on the same date in the previous year. write your comments about the article :: © 2010 Construction News :: home page |