North America drives Volvo CE revenue

Volvo Construction Equipment (Volvo CE) has reported that it saw an increase in sales in the fourth quarter of 2022 in all markets compared to the same quarter the previous year, with North America seeing the highest increase at 54%.

According to the company, net sales increased by 27% in the fourth quarter of 2022 to SEK 27,596 M (US$2.7 billion), with contributions from both machine sales and the service market. After adjusting for currency movements, net sales increased by 13%, with net sales of machines rising by 15% and service sales remaining at a similar level.

For the full year of 2022, net sales rose by 9% to SEK 100,261 M (US$9.8 billion). The adjusted operating income for the full year was SEK 13,244 M (US$1.3 billion), corresponding to an adjusted operating margin of 13.2%.

The strong growth in North American sales is attributed to strong activity in the infrastructure segment. China, the world’s largest construction equipment market, also saw an increase in sales, as the new National IV emission standard regulations stimulated sales despite the impact of Covid-19 lockdowns.

Although sales in Q4 increased from Q3, they were down by 23% compared to the same quarter in 2021. Volvo CE explains that this was largely due to restrictive order slotting caused by large order books and long lead times in North America and Europe, as well as stopped sales in Russia.

However, deliveries increased by 4% due to emission regulations coming into effect in China and strong demand in North America and Asia.

Melker Jernberg, Head of Volvo CE, says, “We continue to take steps in our transformation journey – continuing to deliver reliable, efficient, and more sustainable solutions fit for our customers’ needs today, while driving investment across our business towards our fossil-free future.”

Recently, Volvo CE has introduced an automatic braking feature Collision Mitigation System for its wheeled loaders and made a large-scale investment in its facility in Braås, Sweden. Over the coming years, the plant will be adapted to produce a larger range of articulated haulers with different types of powertrains, including electric.