First quarter sales dropped 9 percent for Volvo Construction Equipment compared to the same period a year ago. Sales for the quarter were about $2.4 billion, down from about $2.6 billion in Q1 2021.
Every region saw increases except Asia, where sales dropped 28 percent. The company cited the ongoing Covid-19 restrictions in China as playing a part. Sales to North America were up 11 percent to about $498 million.
Said Melker Jernberg, Volvo CE’s president, in a prepared statement:
“There can be no doubt that the industry and the wider world itself is in the midst of extremely challenging times, but I am proud that we as an organization are tackling these issues head on – supplying our customers with the products and services they need today, while focusing on the tragic humanitarian crises going on around the globe and taking action on urgent climate change. During this difficult period, we are keeping up the speed of transformation to more sustainable construction and infrastructure solutions, helping to decarbonize value chains, all the while safeguarding our communities around the world.”
During the quarter, operating income has been negatively affected by lower machine volumes and higher material costs, which were partially mitigated by improved price realization and higher service volumes, according to the company.