Volvo Construction Equipment (Volvo CE) has reported an 11% increase in global sales in Q1, 2023, driven by strong earnings and continued demand in Europe and North America. The company has seen good profitability and an increase in operating margin, supported by sustained demand in large infrastructure and construction projects, as well as its own investments into the industry’s technological shift towards zero-emission solutions. Sales have grown by 17% in Europe and 37% in North America compared to the same period last year, compensating for a slowdown in Asia and South America.
Volvo CE’s success has been primarily driven by ongoing infrastructure investments and the mining industry, which benefits from strong commodity prices. Despite a decline in net order intake, heavily impacted by a drop in China following the pre-buy effect of emissions regulations, North America saw the most significant increase of 107%. However, deliveries in China and Brazil slowed down, while deliveries in North America and Europe, excluding stopped sales in Russia, increased.
Volvo CE’s global investment in sustainable power solutions continued this quarter, including milestone investments into battery pack production and electric wheel loaders. The company launched the L120H Electric Conversation wheel loader, fulfilling market demand for more sustainable solutions in the mid-size range, and the zero-emission EC55 Electric excavator in India.
The CONEXPO trade show in Las Vegas in March marked the launch of new service offerings in North America, such as Connected Map, Task Manager, and Global Load Out solutions, designed to increase connectivity, productivity, and sustainability in work site solutions. The event also saw the handover of the first articulated hauler made from fossil-free steel in North America to a customer, CRH.
Melker Jernberg, President of Volvo CE, says, “Strong profitability and robust sales like the kind we see this quarter is of course important to us and is a testament to the great products and service solutions we continue to bring to the market. But these results also allow us to maintain our industry lead in the sustainable transformation, increasing our investments into zero-emission solutions and demonstrating innovative partnerships in what is no doubt the biggest technological shift ever to happen in our industry.”