Volvo Construction Equipment reported sales in the first quarter of 2024 were either negative or flat, depending on the region.
Compared to the strong sales in Q1 2023, the company says market demand is softening, with lower deliveries and order intake in Europe and North America compensated only slightly by stronger performance in Asia.
According to Volvo CE’s Q1 report, net sales dipped by 9% to $2.09 billion (22,877 M SEK) from $2.29 billion (25,109 M SEK) in 2023.
Compared with Q1, 2023, a negative brand and market mix was partly offset by price realization and lower material costs. The company reported that net sales of machines decreased by 9% and service sales by 3% when adjusted for currency movement.
North America and Asia each saw a 2% decline in sales for Q1 2024. The largest decline was in Africa and Oceania with a 25% drop, while European sales dipped by 17%.
Driven by signs of recovery in Brazil, orders increased in South America from a low level in 2023 and overall sales remained stable.
“Maintaining profitability remains a high priority and we have taken great steps to ensure as strong a performance as possible during these tougher times,” said Melker Jernberg, president of Volvo CE.
