Gardening Events

In the 2nd quarter of the yearly 2009 the demand for large, compact and road construction machines decreased/went back to almost half of the appropriate period last year. World-wide 48 per cent were sold less. This market weakness is to be observed world-wide: The decrease in demand in Europe amounts to 62 per cent, in North America 53 per cent, in Asia 14 per cent and on the other markets of nearly two thirds (65 per cent).
Due to this difficult market situation registered Volvo CE in the 2nd quarter an operating loss at a value of 1.259 millions sec. in the same period 2008 an operating profit of 1.629 millions sec. one gained. The yield on turnover decreased/went back likewise clearly. It amounted to minus13,8 per cent compared with a plus of 9,7 per cent in the 2nd quarter of the previous year. These numbers result from the dismantling of the production capacities and the small extent of utilization of only 30 per cent in the course of the quarter. Therefore it came to an understocking of overhead costs of the production system. In addition the operating result was affected by expenditures in connection with the dismantling by jobs.
To positively rate it is that the reduction in capacity helped to reduce stocks which decreased in the 2nd quarter by further eleven per cent. Since October 2008 the number of available machines sank by 40 per cent.
To these results Olof Persson, president said of Volvo CE: „ we work hard to convert the measures rapidly which are to bring our costs in such a way in the equilibrium that they fit this smaller demand. Regardless of the current bad situation on our markets I am convinced of the fact that the long-term impulse forces, which provided so far for growth in our industry work also further. \ " &
Stable one market share in view of the global economic situation was smaller the order books at the end of of June 2009 around 70 per cent than at the end of of June 2008.& Nevertheless Volvo Construction equipment could its market share on most markets and with most product segments maintain or even improve, because customers go rather safe and competitive products of the prominent marks to buy. Also spare part sales and customer service achievements cut off in the recession better.
China is one of the few rays of hope in the world, since incentives for investment helped to let the demand in the 2nd quarter rise around six per cent. That contributed to absorb the wing over in Asia. Elsewhere incentives for investment must still prove that they bring movement into the market.
Further difficult market conditions the prospects for 2009 are coined/shaped by many more difficult market conditions than 2008. The European market presumably shrinks over the entire year around 40 to 50& Per cent. For North America 2009 a decrease are predicted from 30 to 40 per cent. The remainder of the world will probably likewise register a decrease from 30 to 40 per cent in relation to the previous year.
To the highlights with Volvo CE in the 2nd quarter the completion of motor grader production belongs in Goderich, Canada. The last machine rolled in June of the volume. Motor grader production was integrated in the meantime into the road construction machine work with seat in Shippensburg, the USA.
Volvo Construction equipment (Volvo CE) is an important, internationally active enterprise, which manufactures and markets machines for the building industry and for branches of industry related to it developed. Its products, which are prominent in many markets in all world, cover a broadly diversified pallet at wheeled loaders, hydraulic excavators, break-guided Dumpern, motor graders, & Earthwork and asphalt rollers, manufacturers, & Road grooving machines, compact equipment and materials handling equipment.
Volvo CE belongs to the Volvo company, to the world largest manufacturer of diesel engines in the class of 9 to 18 litres. The Volvo company is one the manufacturer of truck, buses and construction machines, drive systems for navigation and industry, construction units for aviation as well as services, leading world-wide. The company offers likewise complete solutions for financings and thus used services.