Volvo Construction Equipment recently released data for the third quarter of 2020 on its official website, showing a strong recovery in demand.
The company's latest performance shows that although the global pneumonia epidemic continues to limit growth in the European and North American markets, the strong rebound in the Chinese market has helped the company's sales, orders and machine deliveries during the reporting period.
The main data for the third quarter included a 40% increase in orders, a 20% increase in machine deliveries, and a 6% increase in adjusted sales. Volvo CE’s net sales in the third quarter actually fell by 2% (from 17,921 SEK in the same period in 2019 to 17,619 SEK), but it increased by 6% after adjusting for currency changes.
In terms of machine utilization, the company said it has seen some recovery in most markets. However, its two largest markets (Europe and the United States) both fell by 19%, and Asia (excluding China) also fell by 13%. The strong growth in the Chinese market (demand growth of 22%) is due to the growth in demand in the South American and African markets.
During the reporting period, Volvo CE announced the divestment of its North American Blaw-Knox paver series. It also stated that it will deliver the first batch of all-electric small machines to the UK, France and Germany.
Volvo CE President Melker Jernberg said that following the sharp decline caused by the global pneumonia epidemic in the second quarter, the company is pleased to see the gradual recovery of construction activities in most markets in the third quarter.
He said: "The world's largest market-China has a particularly strong demand. Here, our market share continues to grow." He added: "Due to the uncertainty caused by the continued spread of the epidemic, we will maintain cost control. Pay close attention to and prioritize the health and safety of colleagues, customers and business partners."
