Volvo Construction Equipment (Volvo CE) has reported an increase of 5% in sales for the full year 2019 compared to the year before, with gains in market share in China contributing to the results.
Net sales for the full year 2019 rose $9.1 billion, with Europe, North and South America, and Asia all seeing growth, said Volvo. The only region to see a decline in sales was Africa and Oceania.
The positive full year results come despite the company seeing a 3% decline in sales for the fourth quarter of 2019, when sales dropped to $2 billion at an operating margin of 9.8%. Despite this decline, demand in Europe was strong in Q4, with Germany, Italy, France and Russia leading the way.
Sales also grew 6% in North America when compared to 2018, helped by greater demand for larger equipment while growth in Brazil saw Volvo post a high 17% growth figure for South America.
Asia, meanwhile, was down 11% year-on-year, excluding China. Growth continued in the Chinese market, with a rise of 8% fuelled by increased demand for both excavators and wheeled loaders.
Melker Jernberg, president, Volvo CE, said: “(The year) 2019 was another year of good performance on several levels. We gained market share in the larger equipment category in North America and in Europe saw good developments in sales, operating income and cash flow. Asia has had its challenges, but in China we see encouraging market share growth in large excavators and wheel loaders.”
Volvo CE said it is starting to take orders for electric compact wheeled loaders and compact excavators from this month, with serial production planned for Q3 this year. The company had earlier announced it will stop production of the diesel versions of these products.