Volvo Construction Equipment saw sales increase by 10 percent year over year in the second quarter.
The company says the bulk of the gain was due to increased sales in Europe and North America along with “strong focus” on the company’s service business, “volume flexibility in the industrial system and tight cost control.”
Net sales for the quarter rose to 27 billion Swedish Krona (SEK), or $2.85 billion. Operating income rose 13 percent to 4.153 billion SEK ($441 million).
In Europe, equipment sales rose 5 percent to 8.788 billion SEK ($934 million).
Volvo says demand for large excavators, road equipment and articulated haulers is pushing demand in North America, where sales rose 7 percent to 5.621 billion SEK ($597 million).
In China, Volvo says demand rose 8 percent due to growth in the compact excavators market.
Volvo says order intake increased by 6 percent during the quarter, with the company’s SDLG-branded machines seeing order intake increase by 28 percent. In China, order intake increased by 21 percent, driven by demand for SDLG excavators and wheel loaders.
Deliveries were up 12 percent for the quarter.
“Volvo CE continued on the path of increased sales and improved profitability in the second quarter,” says Volvo CE president Melker Jernberg. “Volume flexibility in the industrial system and tight cost control will continue to be in focus in the second half of the year.”