Volvo Construction Equipment (Volvo CE) has reported strong results for the first quarter 2012, with sales up 17% and record levels of operating income and operating margin for a first quarter.
The company’s sales during the first three months of the year rose to SEK18bn (£1.65bn) compared with SEK15.4bn (£1.4bn) in the first quarter of 2011.
The firm also demonstrated increased profitability during the period, posting a 21% increase in operating income to SEK2.1bn (£190M) compare with SEK1.75bn (£160M) for the same period last year.
Volvo CE president Pat Olney said: “The strong sales growth and high profitability is a combination of growth in all regions, especially in North America, and our success in achieving sales and profitability is on a par with the preceding year in China, despite the significant weakening of that market.”
Olney added that the firm’s success in China was due to increasing market share, and it is now the number one supplier of wheel loaders and excavators through with its joint venture partner SDLG.
Volvo CE also saw sales in North America increase by 111% in the first quarter of 2012 compared with this time last year.
The company says prospects for the rest of the year remain positive, with Europe expected to grow by 10-20, North America by 15-25% and South America and Asia (excluding China) by up to10%. China is forecast to decline by between 15% and 25%.