Home \ International \ Increased sales and profitability for Volvo Construction Equipment in Q4, 2021
Increased sales and profitability for Volvo Construction Equipment in Q4, 2021
01/02/2022
Pubblicato da Ettore Zanatta
All regions outside China saw an improvement across sales and deliveries for the final quarter of 2021, supported by a rise in sales of services and compact electric machines across many key markets.
Despite the continued decline in China, Volvo Construction Equipment (Volvo CE) sustains its solid growth with high infrastructure investment particularly across Europe, North America and South America, and increased revenue from services. The current drop in China is due to a saturated market for excavators following last year’s high sales levels and the overall slowdown in construction and infrastructure investments across the region.
In Q4, 2021, net sales increased by 5% to SEK 21,812 M (20,810 M). Adjusted for currency movements net sales increased by 2%, of which net sales of machines were flat and service sales increased by 14%. Primarily impacted by the decline in the Chinese market, global order intake decreased by 24% and deliveries decreased by 18% for the final quarter. For the full year 2021, net sales amounted to SEK 92,031 M – rising from SEK 81,453 M from last year and demonstrating that the global market is continuing to spring back from the initial hit caused by the disruptions of 2020. Adjusted for operating income, it increased to SEK 12,228 M (10,071), corresponding to an adjusted operating margin of 13.3% (12.4%).
The European market showed a continuation of solid growth (27%) with a high level of infrastructure investments and a recovery in the rental segment. North America’s growth (23%) was supported by investments in commercial real estate and strong housing construction, while South America’s increase of 65% was largely driven by a high demand for commodities. The world’s biggest construction equipment market of China, however, reported a drop of 1% while all other regions in Asia, particularly in Korea and Southeast Asia, continued its rising market development of 19%.
The final months of 2021 saw the first shipment of the 20-ton EC230 Electric excavator for the Asian market from the factory in South Korea – setting yet another milestone for Volvo CE’s electric future. Sales of the company’s compact electric machines, the ECR25 Electric excavator and the L25 Electric wheel loader, continued across key markets with Volvo CE delivering 321 of these machines in the last year. The reveal of a new concept autonomous electric wheel loader, Volvo LX03, also showcased the company’s direction towards decarbonization. “The industry continues to be confronted by the effects of the ongoing Covid-19 pandemic in combination with additional challenges such as transport disruptions, global component shortages and an overwhelmed supply chain,” says Melker Jernberg, President of Volvo CE. “Yet thanks to the dedicated work of my colleagues, partners and suppliers, we have continued to deliver good profitability and took several important steps forward in our efforts to lead the transition to a carbon-neutral construction industry. The greater flexibility, digitalization and innovation across our products and services – not forgetting the stringent targets we have set ourselves in building a better world – have contributed towards a solid performance for 2021.”
Ultime notizie di Volvo CE Italia
Earthmoving Machinery
06/02/2024
Machines perfectly monitored with Volvo ActiveCare
With ActiveCare, Volvo monitors the condition of machines re...
Earthmoving Machinery
24/01/2024
Volvo moves to zero with decarbonization showcase at Intermat 2024
Innovation and pioneering partnership will be at the forefro...
Road Machinery
19/12/2023
The Ammann Group invest in ABG Pavers
Volvo CE has reached an agreement to divest the ABG Paver Bu...
Earthmoving Machinery
01/12/2023
Volvo Construction Equipment partners with CRH to decarbonize construction
Volvo Construction Equipment will play a major role in explo...
Earthmoving Machinery
23/11/2023
Rokbak RA30 is helping to bring surfing to Scotland
The RA30 articulated hauler is able to take on challenging t...
Earthmoving Machinery
14/06/2023
Volvo CE strengthens FIA World RX platform with new partnerships
Volvo CE announces that Parker Hannifin, global leader in mo...
Altri International
International
29/03/2024
Five considerations when investing in an articulated hauler
Choosing the right truck can lead to increased productivity,...
International
29/03/2024
Palfinger Opens its First Site in Australia for Maximum Customer Focus
Palfinger has opened a new site in Perth, Western Australia.
International
28/03/2024
JCB expands its range of compact excavators
JCB is expanding its range of compact excavators, with the l...
International
28/03/2024
Wolffkran enters into joint-venture in Saudi Arabia
Wolffkran entered into a joint venture with the Zamil Group,...
International
27/03/2024
Wacker Neuson Group focuses on digital solutions and IoT expertise
the Wacker Neuson Group has expanded its digital strategy to...
International
27/03/2024
Liebherr-Werk Bischofshofen invests in a new assembly hall
Separate hall for the assembly of the L 507 E battery-electr...