In the fourth quarter of 2015 Volvo Construction Equipment (Volvo CE) reported that net sales decreased by 11 percent to SEK 10,967M, compared to SEK 12,277 M in the same period of the preceding year.
In the fourth quarter of 2015 Volvo Construction Equipment (Volvo CE) reported that net sales decreased by 11 percent to SEK 10,967 M, compared to SEK 12,277 M in the same period of the preceding year. These figures were due to further large declines in China and Brazil, coupled with headwinds in many markets outside of North America, which also showed signs of cooling. For the full year 2015 Volvo CE saw sales recede by 3 percent to SEK 51,008, while operating income almost doubled, at SEK 2,090 M, up from SEK 1,231 M in 2014.
Transformation Is Working
Operating income, excluding restructuring charges, during the final period of the year resulted in a loss of SEK 191 M, a considerable improvement compared to the loss of SEK 815 M in the same period of the previous year. Operating margin also showed signs of progress, at negative 1.7 percent for the period — up from a negative 6.6 percent in Q4 2014. Operating margin was positive for the full year, at 4.1 percent, sharply up
from 2.3 percent in the same period the year before. These relatively encouraging developments were achieved despite lower sales volumes, low capacity utilization and a credit provision in China of SEK 158 M.
“In the face of a global market that remained flat to down during 2015, Volvo CE continued to execute on internal measures that drive profitability and resource efficiency,” said Martin Weissburg, president of Volvo Construction Equipment.
“Despite lower sales our operating results improved — and were much better than in the same period in 2014. We took market share in larger, more profitable machine segments, exited backhoes, graders and milling machines and implemented a new governance structures that allows us to make clear, informed decisions. This shows that the activities of the Volvo, SDLG and Terex Trucks teams to drive our transformation as Volvo CE globally are working.”
For more information, visit www.volvoce.com.