Announcing its fourth quarter and full year results, Volvo Construction Equipment (Volvo CE) reported unit sales up almost a third in 2011, amid positive sales trends in most markets, with the exception of China, which had a relatively weak fourth quarter. The company produced an all-time high of 84,000 machines during 2011 (up from 66,000 in 2010), and began 2012 with an order book 51% higher than at the same point in the preceding year.
For the full year 2011, Volvo CE’s sales increased by 21% to SEK 64,987 M, compared to 53,810 M in 2010. Operating income also increased, to SEK 6,653 M, up from SEK 6,180 M in the preceding year. Operating margin was down slightly in 2011, mainly due to the negative impact of currency issues, to 10.2% in 2011, down from 11.5% in 2010.
Thanks to good momentum in most markets these strong full year figures were bolstered by a solid set of fourth quarter results. Net sales in the last three months were up 14% and amounted to SEK 16,750 M (SEK 14,657 M in 2010). When adjusted for changes in the exchange rates, net sales rose to 15%. Operating income saw a modest decrease in the quarter, at SEK 1,649 M, down from SEK 1,758 M in the same period in the previous year. Again, much of this decrease is accountable to currency issues, a factor that also weighed on operating margin, which at 9.8% was down from the 12% reported in the same period in 2010.
Growth set to continue in 2012
The prospects for 2012 are expected to remain positive, with Europe expected to grow by 10-20%, North America by between 15-25% and South America by between 0-10%. Asia (excluding China) is forecast to grow by between 10-20%, while China itself is projected to be on the same level as in 2011.
Table 1. Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona
| Net sales by market area | Fourth quarter | Full year |
| SEK M | 2011 | 2010 | 2011 | 2010 |
| Europe | 5,217 | 4,645 | 19,052 | 16,138 |
| North America | 2,224 | 1,617 | 7,862 | 6,267 |
| South America | 1,050 | 1,140 | 4,177 | 4,130 |
| Asia | 7,134 | 6,410 | 30,151 | 24,352 |
| Other markets | 1,125 | 845 | 3,745 | 2,923 |
| Total | 16,750 | 14,657 | 64,987 | 53,810 |
Ends.
February 2012
For further information, please visit: www.volvoce.com/press
Or contact:
Clare Gittins Brian O’Sullivan
Director, External Communications SE10
Volvo Construction Equipment London
Tel: int + 32 24825021 Tel: int +44 207 107 2000
Email: clare.gittins@volvo.com Email: osullivan@se10.com
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