Volvo Construction Equipment (CE) faced lower sales volumes in Europe and North America during the third quarter of 2024, compared to the high levels achieved last year. Despite the decline in overall net sales, the company maintained solid profit margins and saw growth in the Chinese market, while also focusing on supporting customers and advancing its industry transformation efforts.
Net sales for Q3 2024 dropped by 23%, reaching SEK 18,809 million, down from SEK 24,296 million in the same quarter last year. Adjusted for currency fluctuations, this represents a 20% decline. Machine sales fell by 24%, while service sales grew by 2%, reflecting a growing demand for digital solutions in the market.
Despite the overall sales drop, Volvo CE saw a slight increase in net order intake, driven by a 59% rise in South America and a 44% increase in Europe. Global deliveries were lower compared to last year, primarily due to decreased demand in Europe and North America, as well as inventory reductions at dealerships. However, higher deliveries of SDLG products in China helped offset some of the decline.
Melker Jernberg, Head of Volvo CE, acknowledged the market challenges, stating: “We are navigating through turbulent times, but we remain focused on leading the industry transformation with a strong portfolio and new product rollouts. Our commitment to building a sustainable future is unwavering, even as we balance today’s challenges.”
Volvo CE continued to launch new and upgraded models across key markets, including a new generation of excavators and the much-anticipated L120 Electric wheel loader. Additionally, the company inaugurated a new wheel loader production facility in Arvika, Sweden, to support its electric vehicle manufacturing efforts.
The global construction equipment market contracted in Q3 2024 compared to last year. Europe experienced a 25% decline from historically high levels, driven by low business confidence and market saturation. North America saw a 9% drop as demand normalized after a strong 2023.
In Asia (excluding China), the market saw a slight 2% decrease, with growth in India, Indonesia, and the Middle East offset by declines in countries like Turkey. Meanwhile, China posted a 5% market growth, driven by government measures to boost the real estate sector. Similarly, South America experienced a 5% increase in demand, supported by strong activity in Brazil, Peru, and Chile.
