Volvo Construction Equipment posted an 11% year-over-year decline in sales in the fourth quarter of 2015 despite improved underlying earnings and market share gains in the important larger machine segments, the company said.
For the full year, Volvo CE sales declined 3% compared to 2014.
Fourth quarter net sales were $1.3 billion (SEK 10,967 million), compared to SEK 12,277 million in the same period a year ago. Large declines in China and Brazil, coupled with headwinds in many markets outside of North America – which also showed signs of cooling — contributed to the decline.
For the full year of 2015, Volvo CE’s sales dropped 3 percent to SEK 51,008 million. However, operating income almost doubled from SEK 1,231 million in 2014 to SEK 2,090 million in 2015.
“In the face of a global market that remained flat to down during 2015, Volvo CE continued to execute on internal measures that drive profitability and resource efficiency,” said Martin Weissburg, president of Volvo Construction Equipment.
On a year-to-year basis, Europe was the strongest area for Volvo CE in 2015. For the fourth quarter, net sales jumped 7.1% from SEK 4.023 billion in 2014 to SEK 4.308 billion in Q415. For the full year, net sales jumped 3 percent to SEK 17.732 billion.
In North America, Volvo CE posted an increase of 9.8% for the full year, with total net sales of SEK 11.843 billion compared to SEK 10.784 billion a year ago. However, the fourth quarter, North America sales dropped 8.3% compared to the fourth quarter of 2015.