The continued deceleration in global demand was partially offset in Volvo CE’s third quarter 2015 results, with operating margins stable and market share gains, despite a 6% fall in net sales during the period.
In the face of significant market headwinds that continue to see lower demand – especially in China and South America – Volvo CE’s third quarter 2015 financial results saw stable operating margin and market share growth in larger machines, despite a fall in overall sales.
Net sales in the third quarter decreased by 6%, amounting to SEK 11 884 million. Operating income, excluding restructuring charges, decreased to SEK 576 M, from 648 M in the same period during 2014. Despite the lower demand, operating margin remained largely stable, at 4.8%, compared to 5.1% in same period last year. Favourable currency movements assisted earnings and gross margin improvements, as a result of better product mix and lower operating expenses.
“Despite volumes being down by 25% during the period, our targeted sales activities and ongoing efficiency program helped to deliver positive operating income and market share gains in the segments for larger machines,” commented Martin Weissburg, president of Volvo Construction Equipment.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/europe-cis/28102015/volvo-market-share-demand-q3-865/