Volvo Construction Equipment experienced a 17% increase in net sales in the third quarter of 2004 compared with the same period in 2003.
The company's results, announced as part of parent company AB Volvo's third-quarter report, continues a succession of previous positive quarters indicating strong performances in a growing global marketplace for construction equipment.
New product launches during the third quarter by Volvo CE included a four-model range of short swing compact excavators in the 2.5- to 8-ton classes, and the Volvo BL61 backhoe loader. Upgraded versions of the Volvo EC45 compact and the Volvo L30B and Volvo L35B compact wheel loaders also were introduced to segments of the company's international market. Volvo CE continued its divestment during the quarter of the operations of its former U.S. dealer, LB Smith, which the company acquired in 2003 with the sales of a New York dealer territory.
Volvo CE's outlook for future operations is promising--approximately 32% higher when compared with year-end 2003.
"The market looks stronger than we could have anticipated at the beginning of the year," said Leif Johansson, president and CEO of AB Volvo. "We have upgraded the forecast for heavy construction slightly, expecting an increase of 30% in North America and 10% in Europe in 2004. For 2005, growth rates are expected to level off at historically high levels in both markets."
