Despite this, the company’s net orders increased 24%, buoyed by Asian markets. North American orders increased but are at a relatively low level.
Volvo’s net sales declined 6%, but when adjusted for inflation increased 2%, with machine sales increasing 2% and service sales remaining consistent.
Volvo noted that the machinery market dropped 10% in Europe and North America, with the European market becoming saturated, while in North America there was lower demand.
The Chinese market increased for smaller machines, with Volvo citing investment in residential properties by the Chinese government. Elsewhere in Asia, the market grew 6% and in South America it rose 8%.
Volvo CE’s table showing net sales by market area, in millions of Swedish KronaMelker Jernberg, Volvo CE’s head, said: “At a time of market uncertainty, we focus on staying closer to our customers than ever before, while maintaining a solid performance and investing in the future.
“Our ambition is to own and manage the majority of our construction business in Europe, strengthening our total solution sales capabilities and service business.”
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Volvo CE buys own dealer for $700m to boost German sales Volvo to invest $260m upping global crawler-excavator production Volvo joins group pushing for electric machinery standards Volvo to spend more on Mexican truck factory despite Trump’s tariffsVolvo CE reports 6% decline in sales citing ‘industry challenges’ Global Construction Review.
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